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Updated over 5 years ago on .

User Stats

179
Posts
292
Votes
Lennon Lee
  • Rental Property Investor
  • Miami, FL
292
Votes |
179
Posts

Grow Rich In Your Sleep Through Real Estate Investing

Lennon Lee
  • Rental Property Investor
  • Miami, FL
Posted

Real estate investing is responsible for more wealth than any other investment vehicle in the world! The secret is, real estate is the only investment that has five separate compounding benefits all working for you at the same time. Let’s break down those benefits individually:

1) Tax Benefits (Depreciation and write off of real estate taxes and interest paid on mortgage loans)

2) Appreciation (Not guaranteed, but has been the norm 95% of the time according to historical data)

3) Positive Cash Flow (This is the difference between the monthly expenses and the total rental income)

4) Equity Build up (Tenants pay rent, you then make your mortgage payment lowering the remaining balance each time)

5) Equity Capture (Buying the real estate at a bargain price, capturing for yourself the seller’s forfeited equity)

When you harness all of these forces compounding to your benefit on a regular basis, you begin to understand how massive wealth accumulates over time.

I understand these 5 concepts of increasing wealth, are there any other benefits that are worth mentioning?

-Lennon LEE