Here are the four reasons why you should have real estate in your portfolio.
We are just about to start our investor book club and one of the questions we heard went something like this: “There are a lot of ways to invest your money. Why real estate?” Here are my top four reasons:
1. You’re buying an asset that appreciates in value. If you buy and sell within a year, you could very well lose money on the home. Over long periods, however, home values always increase and will always appreciate. If you leverage this right as a long-term investment, you’ll create great cash flow and great equity.
2. You can leverage your property. If you want to get a loan for an investment property, you can get one for less than 3% right now. We’re refinancing an investment property for an unheard of 3%.
“You can create cash flow while simultaneously gaining value.”
3. You will create cash flow. You can leverage your property for a very nice interest rate right now. When you do that, it creates a forced savings account while also creating cash flow.
4. Someone else is paying down your mortgage. Whoever rents the home will be the one paying that mortgage payment. You won’t have to move money around to do so.
These are just some of the reasons I love real estate as an investment vehicle. If you have any questions or would like to learn more, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.