Yes, Just 1 Real Estate Property. This is why Real Estate is the best investment you can make in growing your wealth.
Cash Flow
Appreciation
Tax Benefits
Principal Paydowns
Forced Appreciation
5 Ways To Make Money From 1 Investment Property
When it comes to investment opportunities, real estate is often considered one of the best options. And for good reason – investment properties can generate significant cash flow, appreciation and tax benefits. Not to mention, pay down the mortgage principal and create forced appreciation.
If you're thinking about investing in real estate, here are five ways you can make money from just one investment property:
1. Cash Flow: Rental income from tenants can provide a consistent source of cash flow. This can be especially helpful if you invest in a property that is already leased out and generating income.
2. Appreciation: Over time, your investment property is likely to appreciate in value. This can be a great source of profit when you eventually sell the property.
3. Tax Benefits: investment properties offer a number of tax benefits, including the ability to deduct expenses like mortgage interest and property taxes.
4. Principal Paydowns: As your tenants make their monthly rent payments, a portion of that will go towards paying down the mortgage principal on your investment property.
5. Forced Appreciation: By making strategic improvements to your investment property, you can create what is known as "forced appreciation." This can increase the value of your property, allowing you to sell it for a higher price down the road.
Investing in real estate can be a great way to grow your wealth. And by following the above tips, you can maximize your chances of success.
Today, we focus on our five ways that you can make money off of one real estate property. This is super cool. And to me it shows exactly why real estate is the best investment that you can make a growing year up.
- Okay, well, Isabella, tell us what's the first one then.
- The first one is cash flow.
- All right, well, cash flow guys. Can I talk about it?
- Yes.
- Cash flow is basically the money left over after all your expenses are paid off. After your mortgage, your property taxes, your insurance, your utilities are paid. The money that's left over is called cash flow. What's next?
- The second one is appreciation.
- Appreciation, very good. Appreciation can be huge. This can be the fastest way to grow your wealth. In the last couple of years we've seen markets appreciate a whole lot 20, 30, 40%. So it's a huge and a fast way of making, making a lot of money. What else is there? - Oh, the next one is tax benefits.
- That's true. Tax benefits. Obviously, if you're a real estate investor, you're being taxed as a separate business. There are many things you can start writing off. There are income splitting strategies. There's so many things behind tax benefits anyway. So yes, definitely a way of making money within real estate. What else? - Next we have principle pay downs.
- Principle, pay down. Now, this is my favorite way of making money on a real estate property. It's basically tenants paying down your mortgage and then they're also building into your equity. Okay, so every month mortgage is paid down, there's there's the principle a portion that's paid down off of your principle.
- The next one is forced appreciation - Forced appreciation. All right. Now forced appreciation is basically as an investor you're lifting the value of the property, and this can be done by changing the use of the property. Perhaps it's renovations you're doing inside of the property, all of these things which increase the value of the property. Okay? So these are five different ways you can make money in real estate.
- Wow, that video was outstanding. And after that conversation, Daddy, please can I get a property? I really want one. I'll do anything. Please, please, please, please, please.
- See you next time.