A large number of business owners are still afraid to invest in property after the downturn in real estate values the past few years, even though the real estate market is big and diverse with a lot of opportunities. Maybe this is due to lack of information, because business can gain more leverage if investing in real estate.
Want more leverage?
The RE Market still remains one of the few investment motors that can easily get bank’s money. Owning a property shows ability to make a down payment and increases the overall return on investment.
Want tax free growing?
Never buy rental property based only on speculations and hear says. Guessing the property’s value is a dangerous game, especially on cash flow. However, a well chosen property will be off use in the long run and you should consider the tax deferred option. Later on you can other tax free options such as a charitable trust, or maybe an installment sale.
Want a tax free cash flow?
It’s a well know fact that depreciation and mortgage interest deductions on leveraged capital will make the cash flow to be tax free. Most of the time, the investor does not pay taxes on their cash flow, and gains more capital after the sale of the property.
Want tax write-offs and deductions?
As an active investor in real estate property there is a chance your rental property gain you tax deductions not just on the property itself, but against your other income as well. It’s worth asking your tax professional for this possibility before you make the investment.
When investing in a rental property, you will get the opportunity to convert personal expenses into valid business deductions and since rental real estate is a business, all travel expenses from and to your property, as well as payments to a family member that manages the property is deductible. This will increase the tax benefits regarding cash flow and will greatly affect the future sale of the real estate.
What your rental real estate to be an additional retirement plan?
People in general are not good savers of their money. This is mostly due to lack of self discipline. By buying a rental property you have to show commitment in order to get good results. The good news is that the commitment surely pays off because in the long run, all the hard work will build up cash flow and wealth.
Every successful entrepreneur has taken profits from their businesses sooner or later over the years and invested that money in rental property. Once the first rental property proves profitable, businesses does not stay at just one, but multiply their profits with a lot of real estates. By investing in real estate and rental properties, you will earn money you have never imagined you will have. Have in mind that majority of investors will not get rich overnight, maybe just one or two lucky ones, but in a long term investing which will turn into true wealth.