To make the most money possible when investing in real estate, you need to account for four specific factors.
There are four factors you need to account for if you want to make the most money possible while investing in real estate:
1. Cash flow
3. Tax benefits
4. Equity gain
Unfortunately, though, most investors only focus on one of these factors at the expense of the others.
For example, some people look at cash flow (especially with multi-unit properties) and neglect to consider appreciation. If they’re buying land, they might focus on the appreciation potential but forget that this type of purchase doesn’t bring much cash flow.
As far as tax benefits go, many people forget about these entirely because they only consider the value a real estate investment brings before taxes.
Neglecting the last factor—equity gains—is something that really makes me cringe. If you’ve owned an investment property for 15 to 20 years, even if it doesn’t create a large cash flow, you still might be paying $200, $300, or even $500 off on your note every month. Over time, that equates to a significant equity gain.
I’ve helped many people become successful real estate investors over the years. I own several properties myself, and I would love to help you become a top-level investor too.
If you’re interested in getting started or you have any more questions about this topic, don’t hesitate to reach out to me. I look forward to speaking with you.