Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x

Posted over 4 years ago

How To Make Money With Real Estate

It is very hard to lose money with real estate investing. A bad investor can make it look easy.

Real Estate Simultaneously Pays in 5 Independent Ways

A smart real estate investor can easily earn total rates of return of about 50% annually. Yes, that high! Real Estate pays in following 5 independent ways:

1. Appreciation

2. Cash Flow

3. Loan Amortization

4. Tax Benefit

5. Inflation-Hedging

Let’s say you purchased a single-family rental for $100,000 by putting down $20,000 and taking out an $80,000 loan from the bank. Now let’s add up:

Capture 2


It’s Almost Impossible to Lose Money in Real Estate If You Follow This Simple Rule

Always buy for cash flow, never for appreciation. Let appreciation be cherry on the top, not the whole cake. Timing the market is not investing, it is gambling. The challenge most people have is that they live in a city where it’s hard to find cash-flowing properties. That’s why you need to be open to investing out-of-state with a professional property management company.


Do This Next Time You Invest in Real Estate

1. Don’t try to time the market

2. Invest for cash flow

3. Be open to investing out of your city and state.

4. Hire a property manager so that you can scale up.


Comments