Here are some of the reasons why people choose to invest in real estate:
• Income/Inflation • Depreciation/Deductions • Equity • Appreciation • Leverage
Income The income that comes from investing in real estate can be two fold. You can receive active income (from flipping a property) or passive income (from renting a property out). Both types can be very beneficial and crucial to the longevity and success of your business. I suggest talking to a CPA or tax attorney to really understand how each type of income is taxed (because they are taxed differently) and to make sure you structure your business in the best way to maximize this benefit! Lastly, the fact that home values tend to keep up with inflation over the years is a huge plus to many! Tax Deductions This will be discussed further in the next chapters, but I wanted to just mention it shortly here. There are many ways one can realize the tax benefits of starting a real estate investment business depending on which side of the table you are on. For one, there are many deductions one can take when you own a company. And second, when you own a long-term rental, depreciation is a beautiful thing!! Stay tuned to learn more..we will go into further detail in the coming chapters. Equity Equity can come in a few different ways. One, you can automatically have it when you buy a property. For example, If
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