We have worked with many real estate investors over the years. Mike S. my partner, was an investor for quite a while as well.
Being a real estate investor has many benefits over having a typical job.
Here are a few reasons to help get you pumped up and excited about becoming a real estate investor.
- Control over your destiny.
When you work in the corporate world, your destiny is really at the hands of the CEO or your immediate superior.
That can be very scary.As a real estate investor, I control my own destiny. If I want to make more money, I hustle harder to find good deals.
If the market gets flooded with homes for sale or rent, I just step up my marketing.If the value of one of my homes decreases, I can rent it out and wait for it to bounce back.
- Tax benefits.
If you work a normal job, you pay a lot of your hard earned money to taxes plus your write offs are very limited.
As a real estate investor I am rewarded with tax benefits including appreciation and lower tax rates for long term profits.
PLUS the cash I receive from my rentals is not subject to self-employment tax.
- Building equity in your homes.
As an employee of a corporation or company, you might have the option to take out a 401k and if you are really lucky, the company might do some sort of deposit matching with you.
Even then, the average high value 401k is just over $200,000 according to the latest from Vanguard.
As an investor who owns properties and rents them out, ever year my tenants pay down my mortgages.
If I work really hard over a 20 year period and accumulate 10 homes worth $200,000 each, I could retire nicely with a $2 million dollar 401k!
As an employee you would have to be paid pretty well to end up with a $2 million dollar 401k.
- Home values increase (appreciation). While markets do go up and down, for the most part real estate is a pretty good investment.
So my 10 $200,000 homes may end up being worth $250,000 or more each, just because time passes and they appreciate.
The bottom line, try and keep real estate investing in your mind as you work.
Take a little of that 401k money and buy a rental home.
Pro tip: hire a third party to be the landlord.
Why get bothered when a toilet backs up.
Let somebody else worry about that!
By the way, if you are in Arizona and need cash fast for a real estate deal, please contact us right away!
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