Why Invest in Real Estate?

Hi, everyone. Welcome back to my video real estate blog. Today, I wanted to talk about something I am very passionate about: real estate investment. Investing in real estate can reap a lot of benefits.

Why invest?

1.    It’s safe. What I mean is, investing in real estate is safer than stock, equities and bonds.

2.    You can control it. When you purchase a property in your area, you have the ability to oversee it.

3.    Hire a great property manager. Some of you may not be the property management type and I understand that. I can recommend fantastic managers for your property to make sure everything runs smoothly.

4.    Rate of Return. The average rate of return on stocks, bonds, etc. is around 5-10%. Now, let me give you an example of a recent real estate investment: the client bought the property in total for $18,000. If he charges $700 per month for rent, he has a gross of $8,400 a year. Now, to come up with the net profit, take about half of that. His net profit for the year is $4,200. That’s a 23% return. What else can you invest in to get such a great return?

5.    It can be tax-free. Through a self-directed IRA, that 23% and anything else you profit from later on, can possibly be tax-free for life.

These are just a few of the reason I strongly believe in investing in real estate! If you have any questions, please give me a call 502.458.2722

Thanks for watching!