Advantages to Being a Real Estate Investor

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.

  1. 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.

  2. 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. 

  3. 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. 

  4. 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!

Mike Corgiat
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