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Updated over 8 years ago, 06/12/2016
Sell me why would you invest in real estate over another business
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?