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Updated over 8 years ago, 06/12/2016

User Stats

90
Posts
5
Votes
Sunny P.
  • Investor
  • Cincinnati, OH
5
Votes |
90
Posts

Sell me why would you invest in real estate over another business

Sunny P.
  • Investor
  • Cincinnati, OH
Posted

so I am all for real estate but I want to see what you think about this:

You come across a $1 million in investment properties, you put down 20% and take a loan for $800,000.  Now you have $200,000 of your money tied up and 800,000 of bank note on your credit. 

Your cash flow on $1,000,000 invested is let's say $120,000 a year or 1% of purchase price  per month. 

After paying the mortgage, taxes, other expenses, you're left with maybe $15,000-20,000

Of the $1,000,000 invested, you only netted about 15,000-20,000. 

Why? 

You could've earned a lot more on that million invested.  For a cool million, you could invest in so many different businesses such as own multiple subways, start a daycare, own storage centers, own a car wash, own multiple great clips, etc. and your cash flow would be much larger.  

So why rentals?  

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