Ten Advantages of Investing in Real Estate:

1. This is a tangible asset.
Its something you can feel, touch and see. You can drive by it everyday if you want!

2. Your investment may appreciate over time.
In one study of recorded real estate history, real estate had gone up on average 5.5% a year for the last 100 years!

3. Your investment may provide a monthly cash flow.
Many investments will provide a monthly income that you can use to fund more investments.

4. Your investment can grow equity.
Every payment you make on a mortgage decreases your principal balance, which means when you sell you will be getting that money back in equity.

5. This is a unique asset.
As the old saying goes, they don’t make land anymore. Your real estate investment is one of kind! Because of its uniqueness, it is important to structure your real estate portfolio properly.

6. Passive Loss Rules.
Your real estate investment can create a passive loss, even when you are making a positive cash flow. Think of it as a paper loss, which can offset ordinary income and lower your taxes!

7. Your investment may become tax-free.
Imagine that you own a rental property for several years and then move into the home yourself. As long as you meet the new IRS guidelines for a principal residence, when you sell this home you may be able to have a tax-free gain.

8. Your investments may be tax deferred when sold.
If you follow 1031 exchange rules, you can roll your gain into a new investment and defer your tax.

9. The Power of Leverage is a huge advantage with real estate.
By using a relatively small portion of cash you can readily acquire all kinds of investment real estate with leverage – bank or owner financing. This can multiply your return dramatically.

10. You may find a bargain!
Bargain real estate is all around us if we begin to look!