Many individuals are successful in their primary business ventures. Sometimes though they ofter wonder what ways they can invest their hard earned money. As a New Jersey realtor and team leader of The Platinum Group at Keller Williams Monmouth/Ocean office located in Jackson, NJ I have come to learn the the best way to invest your money is through real estate. Below is a short list of why I have this opinion on real estate investing.
REASON ONE- Gain More Leverage
Real estate is one of the fewinvestment vehicles where using the bank’s money couldn’t be easier. The ability to make a down payment, leverage your capital, and thus increase your overall return on investment is incredible.
REASON TWO- Tax Free Cash Flow
It’s no secret that because of depreciation and mortgage interest deductions, your cash flow should be tax-free. That’s right! The far majority of the time an investor will never pay taxes on their cash flow and can wait for capital gains on the sale of the property in the future.
Reason Three- More Tax Deduction
Rental property affords investors with another incredible opportunity to convert personal expenses to potentially valid business deductions. Don’t forget that rental real estate is a business. This means that travel expenses to check on your properties and payments to family members who manage your properties can be deductible and increase the tax benefits when it comes to cash flow and the future sale of the property.
REASON FOUR- Rentals for Retirement
Americans are terrible savers. We lack the self-discipline to put a monthly deposit into our IRA, SEP or 401k as small-business owners. However, buying a rental property is a significant commitment that you are required to commit to and maintain. You will always be grateful in the long-run when you don’t give up on it and build future cash flow and wealth.
After Reading this short post you are probably thinking that investing in real estate is the best thing since sliced bread. Don’t get me wrong it can produce a huge amount of cash flow but there are also risks involved when investing (we will get to that on a post in the near future). If you are interested in finding some investment properties or are interested in talking to one of The Platinum Group from Keller Williams team members located in Jackson, NJ visit my website EllenAndThePlatinumGroup.com