In this video I give an overview of the major benefits of real estate investing that I've used to generate thousands of dollars in passive income each month.
After understanding these concepts you'll see why real estate is such a powerful investment and how you too can start making money through real estate. Reach out if you'd like me to go more in-depth on anything!
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00:00 **7 Key Benefits of Investing in Real Estate**
00:21 Potential for a High ROI (Return on Investment) Why you're able to beat other investments like equities. I.e. stocks, mutual funds, indexes, etc.
01:15 Ability to Generate Cash Flow One of the many ways to profit from investing in rental property that consistently pays you each month.
02:53 Easily Leverage Debt Lenders love to loan money on real estate and debt can allow you to maximize your returns. Keep in mind that with debt always comes risk!
04:06 Build Equity Real estate is and will be in high demand for the foreseeable future. Take advantage of owning a real asset that has a great track record for increasing in value.
06:56 Tax Advantages The government loves to see people invest in real estate. So much so that they will incentivize you through massive tax savings. These are the "secrets" the rich use to keep their money!
09:26 Diversification of Investments Adding some real estate to your overall mix of investments will help lower your risk. There's also numerous ways to diversify within the asset class of real estate itself.
10:47 Hedge Against Inflation As the economy grows and expands the values of real assets like real estate typically go up. Protect your wealth from inflation!
11:29 **The Downside**
You Need Cash - Don't listen to the gurus promoting investing with no money and no credit. Real estate should be fun, not a burden!
Low Liquidity - Money invested into real estate can't be accessed at a moment's notice like selling a stock. Make sure you plan accordingly.
Time Intensive - Once you have your systems in place real estate can be an amazing source of passive income. Getting to that point takes a lot of work!
Risk - Like any investment there is always a certain amount of risk. Make sure you consider your risk tolerance and exposure when making any investment.
