So is Investing in Real Estate Still a Good Investment?

In light of the losses many people have taken in real estate in recent years and an economy that is questionable at best, many wonder if investing in real estate is as good of an investment as it once was.

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Some of the motivating factors for someone to invest in real estate have been: greater financial security,higher net worth less dependence on job more control over your personal financial future, just to name a few.

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I believe those goals can still be attained. Investing in real estate provides a tried and true path to achieving these goals over time. Over Time being the operative words here, yes real estate prices go up and down and I know of no one who has a crystal ball to tell when these shifts will happen, but historically “over time” real estate values have increased. That being said their those who bought or I should say speculated to hold a short time and resell for a profit a few years ago some profited and some lost that is why I called them “speculators” not investors.

I should point out that whenever I speak of real estate investing I am not talking about buying a house for you to live in I am always talking about Income Producing real estate, which could be residential rental property, multifamily apartment buildings, office buildings to lease out to tenants and so forth.

With the middle class in America dwindling, I believe the best chance middle America has to achieve financial independence is with the tried and true “buy and hold” real estate investment strategy.

Whether buying with cash, loans, or taking control of your retirement by investing in real estate with your own “self-directed IRA “account there are opportunities for positive cash flow that we have not seen in years.

Not only could you benefit from this cash flow to have more money to live on but you could use it to invest in additional real estate. And what many investors realized is this income from real estate (passive income) is treated differently than earned income (wages) or portfolio income ( capital gains from stocks etc).

 

Author: Rick Chapin

Having spent most of my adult life engaged in sales and marketing as well as a decade of preparing income tax returns for small businesses, individuals and real estate investors. Running your own business is not easy, you must utilize all the tools available to aid in your business development, I believe your personal development is equally important. I have for many years had knowledge and interest in small and medium sized businesses as it relates to allowable deductions, tax deferred exchanges and other tax treatments, I have also, for many years invested in books, tapes/cds for inspiration and motivation, so it seemed a natural fit for me to become involved in aiding in people in business development as well as their personal development.

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