Real estate investors are realizing much more attractive returns due to the multiple income streams from real estate investing.
Wall Street continues to have terrible days when it comes to returns, Fortune 500 companies continue to lay off thousands of workers, and people are taking their money out of the stock market and placing them into safe investments such as CDs and money markets. However, the annual returns range from 1-4%. What is one to do?
ANSWER: REAL ESTATE AND BEYOND NETWORK!
Appreciation: The Greater Phoenix area has a track record of steady appreciation between 5-6% in a normal market based upon historical data. This is an automatic savings account for many people. The offers opportunity down the road as one holds onto the property as the value continues to appreciate. This provides to open a line of credit to invest in other investments offered by Real Estate and Beyond Network.
Rental Yield: The percentage yield from the rental income. This can be calculated as either gross or net. Experienced real estate investors use the net method.
Inflation: Inflation has a direct relationship with rents since rents increase as inflation increases. Mortgage payments are set in stone on a 30-year fixed mortgage. Currently, the Phoenix market is experiencing heavy foreclosure activity. There are plenty of renters here in the Valley of the Sun.
Leverage: If used correctly, this is one of the ways many people increase one's personal wealth. Leverage does involve risk that must be considered into the equation.
Principal Reduction: An investor will be in much great position if one uses the monthly cash flow to pay down the principal of the loan over a period of time. So, the principal of the loan decreases as the appreciation of the investment increases over time. Again, this is part of the leverage as discussed above.
Distressed Homes: Educated investors seek distressed properties to take advantage of the equity opportunity. The Real Estate and Beyond Network provides services to find, fix, finance and fill with a tenant. We have provided a one stop shop for our real estate investors. Please feel free to visit www.deliateam.com to search for homes.
Tax Advantages: One of your best partners in real estate is Uncle Sam. Everyone has an Uncle Sam on their side. The US Government forces all real estate investors to depreciate one's residential investment. Plus, one can deduct any expenses to the property such as any improvements, property management fees, closing costs, etc. The Real Estate and Beyond Network has a CPA to go over these tax advantages for every investor.
Retirement: The rules have changes on Wall Street. Many people are looking at real estate to be part of their retirement plans. However, many people shy away from real estate because one does not understand the power of real estate. The Real Estate and Beyond Network is here for you. We walk people from A to Z when it comes to real estate investing. Learn more on how to use Self Directed 401k monies to purchase real estate for retirement.
Leave a Legacy: Webster's dictionary defines legacy as money or property bequeathed to another by will. Tell me which parent does not want to better the next generation. We all strive for leaving a legacy. We at the Real Estate and Beyond Network strongly believe in this philosophy. One needs a team of advisors to reach this level. The Real Estate and Beyond Team is here to fulfill that void in one's life. Please listen to Harry D'Elia, host of the Real Estate and Beyond each Saturday from 12-2 Phoenix Time on KKNT 960AM or catch our podcast at www.deliateam.com.
Conclusion: One must seize the opportunity in front of them. Fortunes are made during times like this one. However, the Real Estate and Beyond Network is here to motivate, educate, support and apply all the latest creative real estate strategies for individual real estate investors.