Are you interested in growing your wealth? I would say that owning real estate is the way to go. There are four major ways that I feel are important and want to address them. My goal is to educate you on the benefits and tools of growing your wealth with real estate. If you choose to invest in real estate, we want you to understand and feel confident around these passive and private real estate deals like syndications and funds.
It’s my favorite way to create passive income and financial freedom. However, It's not a get rich scheme. It’s like anything. It takes time, effort, and due diligence on your part.
If you decide to join our ranks, you’ll be among a group of people who have used real estate as an avenue to help build wealth, which allows us to lead our ideal lives with financial freedom.
What are the four ways?
- Appreciation (the home's value increases over time)
- Tax savings (similar to being a small business owner)
- The second is cash flow (what's leftover in terms of rental property and rental income)
- Mortgage principal paid out (amortized loan where the payments are spread out evenly)
Investing in real estate is a great way to become financially free, so remember the four ways to build wealth when investing in real estate and owning rental properties!
You’ll be on your way to shaping the future that you dream about!
Let’s look at the top five points:
- We’ll discuss making money through owning real estate
- I’ll explain direct ownership and what it means for building wealth
- Passive appreciation is holding the asset (home) while the value goes up
- We’ll explore forced appreciation (the owner drives the property value increase)
- The factors people consider when investing in real estate–and what you need to know!
Now, one of the major ways to do make money with real estate is through direct ownership. And what that means is that you actually own the rental properties yourself, and you rent them out to tenants and most of the times I'm talking about multifamily or apartment buildings, but you own it, you rent it, and you keep this property for as long as you want. Hopefully, you'll live off the cash flow for years to come
If there's something leftover at the end of the day, after collecting that rent, getting all the income in and paying off the expenses and the mortgage and the taxes and insurance and that sort of thing. Whatever is leftover is something called cash flow. And hopefully, that's a positive number. There's positive cash flow, and that's what ends up in your pocket that you can use if there's a deficit. That's called negative cash flow.
For those of you who follow my blog, you might have heard something called real estate professional status or reps.
Every month, a little bit of the payment that you make goes towards paying off the interest and some goes towards reducing the principal or the main mortgage amount or the amount that you borrowed every month, a little bit of the principal is getting whittled down by the rental income that you receive. So in essence, you're gaining more equity in the property as time goes on, it's getting paid off, and you're not doing that officially, your tenants are doing that.
So to do a quick recap, when you talk about investing in real estate and owning rental properties, people oftentimes only talk about the going up in value, right?
If you enjoyed today’s episode follow us on our social media: Facebook and Twitter! You can also join our Facebook groups Passive Income Docs or Passive Income Professionals!
Subscribe & Review in iTunes
Hey there – are you subscribed to my podcast? If you aren’t, please show your support of the show by doing so now. I don’t want you to miss a beat, so if you’re not subscribed, there’s a good chance you’ll miss out on those. Click here to subscribe to iTunes!
If you’re one of our super special followers, I would be really appreciative if you also left me a review over on iTunes. Those reviews help other people find my podcast. Why not spread the insight to help other physicians and professionals on their passive income journey? Just click here to review, select “Ratings and Reviews” and “Write a Review” and let me know why you enjoy the show so much. Thank you!
OTHER WAYS TO ENJOY THIS PODCAST:
Download a Transcript (coming soon!)
Download on iTunes