skip to Main Content

Explore the diverse advantages, from steady cash flow and passive income to value appreciation and loan paydown. Discover the tax benefits that come with real estate investments, offering a strategic advantage for savvy investors. Dive into the scalability of real estate portfolios, laying the foundation for long-term financial success. Elevate your understanding and harness the multifaceted benefits that make real estate a powerhouse investment strategy.

 Hey everyone, welcome to the next lesson.
General Benefits of Real Estate Investing.

So if you’re here, you may already be bought in to the fact that real estate investing can be a phenomenal wealth driver and generator. And so I want to talk in this lesson just about some of the really high, high level reasons why some of you might be interested in investing in real estate, if you’re not already, and if you are already interested, then maybe some of the benefits that we’re going to talk about rre going to be new concepts or are just going to sell you even more on the benefits of real estate investing.

So I’m going to be throwing out a lot of terms and don’t worry if they’re not familiar to you. Don’t worry if you’ve never heard of them before. That’s a okay. If you’re just getting started out, you’re absolutely in the right place. So one of the main benefits that attracted me to real estate investing is cashflow. Otherwise known as passive income. And cashflow essentially is money that you make every single month or every single year on an investment. It doesn’t have to be from real estate. You can generate cashflow from any number of things. And that can become passive income after you set up the systems in place to have it be really passive. And that’s what attracted me to real estate at the very onset of my investing career, I said, Oh, this idea, I can make additional cashflow every single month from dollars that I put to work on my behalf is really exciting. So again, we’re going to cover this more in depth and the later lesson, but I just want to talk again, high level about some of the main benefits of real estate investing in case you’re unfamiliar. So cashflow, in other words, passive income money, you don’t have to work hard or assume you want any money, you don’t have to work at every single day that continues to pay you. That’s a passive income is.

Another big benefit of real estate investing is appreciation and appreciation is simply the increase in value of an asset. And again, it doesn’t have to be real estate. We can see that we can see appreciation with stocks or businesses, but in terms of real estate investing, the appreciation is the additional value that a property becomes worth over time. And so you may have heard that over time, real estate tends to appreciate. And that’s true from my experience. If we look at a long enough chunk of time, we see that appreciation, the increase in value over time does take effect. And so the property is worth more later down the road than what you bought it for.

One of the next benefits of real estate investing is something that we call loan pay down. And if you’re using a mortgage, you have a loan on the property. You’re likely making mortgage payments every single month, day in and day out. And most of us are going to do that for 30 years. We’ll use a 30 year fixed loan. If that’s not you, you’re using a 15 year fixed loan or using some other form of leverage or mortgage that we’re going to get into in depth in a later lesson. That’s cool too. But every single month that you’re paying that mortgage, you’ve got a piece of that payment that’s going to the principal and you’ve got another piece that’s going towards the interest. Now, every piece that goes towards the principal, that’s actually buying essentially appreciation in the property that’s buying equity in the property. And so every month that you pay your mortgage, that loan balance will decrease. And so in rental real estate, or if we’re investing in real estate, we’re likely going to have renters who are paying us rent every single month. We’re then turning around and paying our expenses to operate the property and own the property. And if we’re using a mortgage, we’re going to pay the mortgage as well. And if there’s anything left over, that’s cashflow that’s for us. But all of those payments, we’re buying ourselves this property every single month. And in reality, somebody else is buying it for us and they’re helping us pay down our mortgage. So that’s loan pay down.

The two other benefits that I want to talk about really briefly are tax benefits and scalability. Now there are so many tax benefits to owning rental real estate. Again, this is a very high level lesson. We’re going to get into the details in a later lesson, but so, so, so many real estate investors benefit massively from the tax benefits it feels like, and many investors I think would share the sentiment that the tax code was almost written for us as real estate investors to benefit us. We are providing housing as a service, for folks throughout the country. And so the government’s rewarding us for that fact. And so again, just know that there are many, many, many tax benefits to owning rental real estate, and you are likely going to see your tax situation change for the better if you’re decide to invest in rental property.

And I think one of the last benefits that I want to cover here in real estate investing is just the scalability of this business. And I call it a business because I think it should be treated like one. And I do consider investing a business. And like a business scales and grows, you may opt to do the same thing, you may opt not to. What I have found in my experience, over the years, having worked with thousands of investors that have invested literally tens of millions of dollars into rental real estate is that most people don’t just buy one rental property. Now, if you know, if you were the exception, great. I always love being proved wrong, but most people end up buying rental real estate, realizing how powerful of a vehicle it is and end up buying more. And so it really becomes a very scalable business in that the skill set that you learn and discover and the muscles that you exercise from this academy and from actually doing deals out in the wild are going to help you scale your business. If you do it once, you can do it twice. And if you can do it twice, you can do it 10, 20, 50, 30, a hundred times if you so choose. And so that’s, I think one of the real benefits of investing in real estate as a business is that you get to decide how big you want to go and also how fast you want to go.

So in the next lesson, we’re going to be talking about how to engage with Myfi Academy and the material within it so that you get the utmost out of it. I’ll see you in there.

Read More

Back To Top