“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined.” – Andrew Carnegie, billionaire industrialist

For those looking for alternative sources of income outside the traditional 9-5 job, real estate investing is an option worth considering. Many people, even those with no prior experience in investing, are turning to real estate as a profitable side-hustle or even their main venue of income. In this article, we will cover the top five benefits of real estate investing and how you can use it to build wealth.

1. Passive Income

Real estate investors make money from rental payments, value appreciation, and any other income generated from the property. Once you have put in the initial investment and work of purchasing a rental property or flipping a distressed house, you can hire property managers to handle day-to-day tasks while you receive the cash flow. In many cases, your cash flow strengthens over time as you pay down the mortgage and increase your equity.

2. Real estate is a secure investment

Though the real estate market has experienced fluctuations, they are much more mild in comparison to the stock market. People will always need a place to live, so there is an inherent value with real estate that other investments simply do not have. Furthermore, a real estate investment serves as a hedge to inflation. As the economy expands, rent prices go up but your mortgage payment stays the same, this translates to more cash flow. Because the demand for houses and land will always exist, there is generally less risk associated with real estate, making it a safer and more secure investment.

3. Tax Benefits

A big advantage of investing in real estate is the tax deductions and benefits. You can directly deduct the expenses you incur from the property, including management, maintenance, property taxes, property insurance, and mortgage insurance. You may also be able to write off a lot of costs related to running the investment business such as travel, equipment, office space, and advertising. These deductions lower your taxable income, saving you money when it comes time to file taxes.

4. Options and Flexibility

Unlike stocks and bonds where your only options are to keep or sell, investing in real estate offers an abundance of possibilities. Below are just a few options you have when investing in real estate.

⦁ Buy a rental property

⦁ Buy a distressed property for a low price to flip and sell for a profit

⦁ Cash-out refinance to get money on hand

⦁ Split or combine parcels

The more flexibility you have as an investor the better, and no investment offers as much flexibility as real estate.

5. Owning your business

In a report published by recruiting firm Hays, 71 percent of surveyed workers would take a paycut for a better job. But what we know is that leaving your corporate job does not have to lead to less money. In fact, there is an opportunity to earn more money and on your own terms. When you invest in real estate you are investing in your own business and building wealth for yourself. Real estate investors, from beginners to multi-millionaire experts, are entrepreneurs who have decided they prefer working for themselves, rather than the higher-ups.

Intro To Real Estate

For people interested in starting a side hustle or for those who want to leave the traditional job market entirely, real estate offers many benefits and options, even for beginners. If you are looking to take your success to the next level, you will want to equip yourself with the right education to get you there. Our Real Estate Educational Resources will provide you with the tools and knowledge for real life investing to ensure that you feel confident taking this leap. Our real estate education courses are designed for all levels and learning styles and can be the first step to make your investments work for you.

To discuss more about how to get started on your real estate investing journey, book a complimentary consultation with Intro To Real Estate here.

Wishing you great success in all you do!