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Why Real Estate
ОглавлениеWhy Real Estate?
There is no better opportunity than real estate for the average person to become a millionaire in the United States of America.
The proof? More millionaires in the USA have made their money in real estate than in any other area of business.
Real estate is a needed commodity. People need certain basic things just to survive. Air to breathe, water to drink, food to eat, and shelter to protect them from extreme weather.
Well, you can’t make money selling air. Good luck selling water. Forget about the restaurant business (the number one business to start and fail in the USA).
But real estate is needed by all, in good times and bad. We all need shelter. When times are good, real estate values soar. When times are bad, real estate values may go down — but they never go to zero.
Unlike most Wall Street products, it’s hard if not impossible for real estate to lose all of its value. Even if your house or building burned to the ground and you had no insurance, the land you own would still have value.
Even in bad times people need shelter — so maybe two families share one house. Sounds a bit crazy, but people would rather share a house than sleep in a car or on the ground. Much of the world lives with multiple generations under one roof (key words under and roof).
Any real estate investment, when executed correctly, has the following characteristics:
- Instant equity (an increase in your net worth)
- Positive Cash Flow (monthly income)
- Lower Taxes (IRS rules insure this benefit)
- Deferred Taxes on capital gains (IRS 1031 exchange rules)
- Passive Income (no work just CHECK$ in the Mail)
- Inflation Hedge (rents go up annually)
- Appreciation (Value increases and/or Debt Reduction)
In summary, you should invest in real estate because it is always in demand, it has the best IRS tax treatment, and it can provide you with passive income with minimal effort or time.