4 Reasons to be Thankful for Real Estate This Thanksgiving

[Collin Van der Veen]

1. Cash Flow

The extra profit left over after all of the expenses on a property have been paid. Your wealth really starts to compound when this profit is reinvested back into your portfolio.

2. Appreciation

The natural rise in value real estate tends to experience. While prices may rise and fall in the short term, real estate almost always tends to increase in value in the long term.

3. Debt Pay-Down

When you purchase a property using debt, part of the payment you make each month to the lender is the repayment of the principal balance. As you pay down more of this balance, your equity in the property increases. When you rent out your property, your tenants do this for you.

4. Tax Benefits

The U.S. government gives numerous tax benefits to purchasers of real estate. Depreciation, for example, allows many investors to earn positive cash flow each year, but owe nothing in taxes.

If I make $100,000 per year from my job, my buddy earns $100,000 per year from a business he owns, and you earn $100,000 per year from real estate, who do you think keeps more?

That’s right, you do.

Happy Thanksgiving, all.