Real Estate Investing Training


Advantages of real estate investing

It may come as a surprise, but real estate investing is actually as popular as ever. Most people think that certain types of investments—and certainly investments in real estate—tend to trickle down as soon as the economy gets rough, or when the housing market is down. But the reality is that certain investments markets, like real estate, usually remain fairly stable. There are some exceptions, of course, but real estate is usually considered to be one of the safer types of investments when you compare them to the risk of stocks, options, and so on.

But why turn to real estate investing? Let’s look at some of the advantages of real estate investing that could make you reconsider taking the plunge and investing in some real estate.

Advantage: Tax benefits and deductions for real estate

Most types of investments do not offer any kind of tax benefits, deductions or other tax relief. One of the advantages of real estate is that it can offer tax deductibles on depreciated real estate. What this means is that your investment can actually get some noticeable income even through the property is depreciating, because part of the investment's generated income can result in a tax break.

Advantage: A greater chance for an increase in income

All investments carry some type of inherent risk. Real estate investments do contain risk, and in some cases this may be a significant risk. However, it is much easier to create less risk, stable real estate investments than it is to do the same with investments like stocks.

The key to a stable, low-risk real estate investment is so look for real estate which is more likely to generate a positive cash flow. These properties typically include real estate in areas with more traffic flow, real estate which is not likely to depreciate in value (such as a prime piece of property in a nice town) as well as real estate which may be targeted by buyers in the future. If you purchase these types of real estate while avoiding investments that are risky, you can ensure that your real estate investing venture will probably be more successful.

Advantage: Real estate investing is a semi-passive income

Another one of the advantages of real estate investing is that it is a type of investing which results in semi-passive incomes. A semi-passive income is almost considered a fully passive income, except a semi-passive income can only occur after action on your part—such as buying a stock, investing in a business or item, and so on.

The benefits of a semi-passive income are that you can actually increase your annual money intake without having to do a bunch of active work, like making constant phone calls or overseeing people in a new factory. Although real estate investing can take a lot of patience, time and thought to get going, you are essentially “sitting by” and letting the property do the work for you.

Running a real estate business from home

Real estate is one of the most potentially financially lucrative markets out there—if you are prepared. Many people are choosing to invest in real estate because of the fact that it can actually produce a significant income, if you know what you are doing. Like any type of investment, real estate investing does take patience, knowledge and the right kind of tools.

Many people who are choosing to invest in real estate, however, are operating their new investment businesses from a place you might not expect: their homes. Home business real estate investing is truly the “new frontier” of real estate investing. The technological advances in online technology which have occurred over the past few years have really opened up many doors for home businesses, including those that deal in real estate.

In the past, a home business real estate investment business could have been tricky to operate. Today, however, there are so many tools and different options which can make an ordinarily complicated business into a much simpler one. To make one example: In the past, if you wanted to run rental properties from your home, you needed to have a business address or P.O. box for your tenants to address their monthly rental checks to—with a modern home business real estate investment software, however, you can actually collect your checks electronically without ever having to leave your home!

Numerous other aspects of real estate management can also now be handled all through the computer. You can manage your database of tenants, compare and contrast your spending with your profit margin, and even collect rent electronically if you have the right type of software. All of this makes it much easier to actively run your business without necessarily needing to be present in person. Your home is now your “business office,” where you can handle the day to day work involved in handling real estate and property while working towards expanding your business exponentially.

But why should you choose home business real estate investing? Let’s look at some of the benefits of running a real estate investment business from your home.

  • Location: When you run a business from your home, you don’t have to worry about traveling to and from work every day; this is especially beneficial if you have a disability or other factor (such as a lack of reliable transportation) which would make traveling to an outside office difficult or impossible.
  • Long term income: When you are collecting monthly rent from tenants, or are constantly flipping a stream of new properties, you are setting yourself up for the greatest real estate benefit of all: a long term income. A long term income is an income that will continue for the foreseeable future, such as tenant rent payments.
  • Cost: Running a business outside of the home can be costly. At home, you won’t have to worry about paying rent, electricity and other bills for yet another building.

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Your Host, John Wilson -Investing In Property Since 2003


How to Invest in Property Without Deposits or Mortgages



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