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Updated 2 months ago on .

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James Wise#3 All Forums Contributor
  • Real Estate Broker
  • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
19,373
Votes |
28,325
Posts

Why don't you Buy the Property if it's such a Good Investment?

James Wise#3 All Forums Contributor
  • Real Estate Broker
  • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
Posted

One of the most common questions newbies ask investor friendly Realtors about their listings is "why don't you buy the property if it's such a good deal?" The answer to this question is simple once you look at the math. It takes several years to recoup your initial cash investment on a rental property. This is true whether you buy this rental property cash, or with financing. The appreciation and cash flow on a rental property takes years to equal the initial cash output of the investment. With this is mind, smart investor friendly Realtors, who are investors themselves, will balance out their long term investment property purchases with short term income gains from commissions on real estate sales. The short term income from the commissions are what typically fuel the long term portfolio purchases. The long term rental property portfolios are then used to grow the investor friendly Realtor's net worth well into retirement.

Why don't you Buy the Property if it's such a Good Investment? | HoltonWiseTV Highlights

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