3 Reasons to Invest in Real Estate

Real estate is a powerful way to grow your wealth. As a general rule of thumb…if you want to be wealthy; get involved in real estate.

There have been more people who have become wealthy through real estate than any other avenue, and there are specific reasons for this.

Investing passively in real estate is actually quite simple, but for many, especially for those just getting started, it can seem daunting.

Let’s make it simple!

Here Are 3 Simple Reasons to Invest in Real Estate:

#1 Capital Preservation: Holding paper assets such as stocks or cash is a risk. Only a fraction of the dollars you deposit at the bank are accessible,  and “assets” such as stocks are  merely electronic digits on a screen. A physical asset like real estate has meaningful value in ways that other “paper investments” don’t. For example, if a piece of real estate burns down, insurance covers it. Additionally, physical real estate does not have up and down days like the stock market, which is a very important difference; you never want to lose your capital.

#2 Cash Flow: The income provided by renters and on-site amenities should exceed the cost of operating the property leaving enough cash to pay the debt and provide investors with a positive return on their equity. This provides a regular income stream that is typically much higher than a stock or bond dividend yield. It is cash flow (passive income) that allows a person to become financially free or achieve “Time Freedom” as I like to call it. At the moment your passive income exceeds your lifestyle expenses, you are free to do what you want, when you want, as much as you want, with your time. You no longer “need” a job; instead, you have the luxury of pursuing work that is meaningful to you.

#3: Tax Advantages: The US Tax Code benefits real estate owners in a number of ways, including mortgage interest deductions and depreciation accelerations that can shield a portion (or sometimes all) of the positive cash flow generated and paid out to investors. Additionally, there is often an added benefit of passively investing in real estate syndications. Ashcroft Capital, for example, pays a third party to conduct a detailed cost segregation analysis which can accelerate the depreciation benefits for investors. These “studies” are expensive and are not always practical to purchase for smaller real estate projects such as a duplex or quadplex. Many “do-it-yourself” real estate investors, unfortunately, miss out on these tax benefits.

These are only a few reasons to consider investing in real estate. I encourage you to connect with me so we can discuss the many additional benefits of passively investing in real estate. I am 100% passive in my investing approach and I dedicate my time to helping accredited investors who are looking for passive investment opportunities that provide consistent monthly cash flow with potential future equity upside. Please find a time that works best for you below. I look forward to speaking with you:

https://calendly.com/traviswatts/consultation

To your success

Travis Watts