For decades people have been successfully investing in real estate and becoming millionaires. But what is it that makes real estate such a good investment$%: Why have so many people become rich from investing in real estate$%: What factors make it one of the best investments on the planet$%:
Is it a safe investment$%:
Real estate values rarely go down over time, even without major improvements to a property. If you just maintain a house over time its value will most likely go up. Just image or ask what your parents paid for their first house, it may easily be worth 10 time what it was bought for. Real estate is also one of the only investments that you can get insurance for. This greatly reduces the possibility of a major loss. In fact real estate is such a safe and great investment that banks will actually loan you money for it.
Borrowing money for investing
This could be the biggest reason real estate is such a great investment. Using the banks money will allow just about anyone to be an investor. Most transactions will require the investor to have some cash on hand, but an investor can typically borrow 80%-90% of the money needed to purchase investment property. Leveraging the banks money will just totally skyrocket your ability to invest. This just proves what a great investment real estate is.
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Making money from renting
There are several ways to create wealth from renting out a property. Monthly cash-flow; renting your investment to a tenant will make you money month after month just from rental income. Over time you are able to charge more rent while your mortgage payments will remain the same. Property value will almost always go up and over time and all the while you are paying down on your investment increasing your equality over time. Renting property is safer than flipping and may take longer for you to build wealth.
Making money from flipping
Buying wholesale and then selling property at retail or market price is also a very popular way to invest. Finding houses to purchase wholesale may be fairly easy because a lot of homes need to get sold fast and the best way to sell fast is to reduce the price. It doesn't take much to purchase a property $15,000 or more under it's market value. Just a few flips a year part-time can make you more in one year than some full-time working salaries. Flipping can build wealth faster but is also riskier than renting.
Real estate is truly a one-of-a-kind investment and one of the best ways to acquire wealth anywhere in the world. Whether you flip or rent your investment, real estate will continue to make millionaires time and time again.
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