As an entrepreneur, you know how to make money – and how to cash in on passive income.
Since you’re keen on the many ways to do that, you’ve probably heard about the “waterfall of cash” known as real estate. The name of the game is all about increasing your profits, right?
Before you jump the gun and dive headfirst into the “real estate pool,” or whether you’re nervous and more scared than a foreign exchange student on the first day of school… real estate is as viable an income-booster as investing in Coca-Cola. Why include renting real estate into your portfolio? Let’s talk about that.
- They’re Safe
Do you know what the phrase “safe as houses” means? (We can take a wild guess.) You’ll hear it a lot in this industry – which is funny when you remember the Great Recession of ’09 and hundreds of thousands of people losing their homes.
However, investing in real estate is safer than a lot of other options. Take stocks, for example. To use Matthew McConaughey’s wise axiom from The Wolf Of Wall Street: “I don’t care if you’re Warren Buffett or Jimmy Buffett, nobody knows when the stock’s going to crash. Least of all stockbrokers.”
- The More You Invest, The More You Make
Back in 2014, I used to live in an apartment. My landlord owned (and operated) 19 more single-room apartments plus a group home. He told me that the rent for his group home—alone—is $1,500 a month. Last, I heard he has 23 tenants in that house. After he pays his staff, renovates and tends to other matters, he still has roughly $30,000 a month in cold hard cash. Imagine what his income is from his 19 different properties.
Let me ask you: Would he invest in so many properties if real estate wasn’t stable?
- Tax-Free Growth
In this racket, cash flow is critical. (That’s a no-brainer, right?) Therefore, buying rental property based on speculation is a huge no-no. What do you do? Consider a 1031 exchange, charitable trust, or installment sales. Let’s zero in on what a 1031 exchange is. The 1031—along with the trust and installment sales—reduce your tax liability – allowing your income cash flow to grow, tax-free.
- Easy As Pie To Begin
You might read a lot of material from “industry gurus” who sell info-products. These info-products usually advise you to get an insider’s wealth of knowledge and to dedicate years of your life for certificates, qualifications and such to become a specialist. More often than not, these are usually attempting to make money off of what you don’t know. Here’s the deal: you don’t need specialist knowledge to invest in the real estate business. All you need to know is basic investing knowledge and techniques, which you can learn on a variety of commercial real estate websites.
- Tax Write-Offs
Yes, we’re talking about taxes again: because they’re that sweet. Now, when you become an “Active Investor” or “Real Estate Professional”—and depending on your income level – you’ll increase your odds of having tax-free cash flow. (Because of your rental properties.) Ask any tax professional in your local area about this tax write-off – they’ll tell you the same thing. Regardless, the advice of a well-known (and reputable) tax professional is bar-none one of the most significant assets to add to your team when it comes to investing in real estate. These consultants keep you from making foolish mistakes and keep you out of trouble with the IRS or CRA.
If you don’t want to deal with hunting for properties, renovating them, development, dealing with tenants or the hundreds of other headaches that come with real estate… don’t. The property industry is vast, meaning these tasks can be outsourced. Buyers’ agents, builders, property managers all know their racket, and what’s required to keep operations running smoothly. Hiring qualified (and five-star) providers maintains your real estate properties making you money in your pocket.