Reasons why you should Step in the Business of Real Estate Investing

Views:
 
     
 

Presentation Description

it is advised to invest in rental properties apart from your regular business. However, do not expect the income generated to make you wealthy overnight. For more details contact us.

Comments

Presentation Transcript

Reasons why you should Step in the Business of Real Estate Investing:

Reasons why you should Step in the Business of Real Estate Investing

Slide2:

New entrepreneurs and start-ups tend to earn nice profits if they get their primary business ventures rolling. However, some opt to go even further by looking for proper opportunities to invest their profits. The business of real estate comes as a nice potential to further mount the profit margins. Some may argue on the recent downfall of real estate market and their risks associated. Let’s discuss some of the reasons or benefits you can capture by stepping into the real estate investment business.

1) More Leverage:

1) More Leverage Real estate is one of the industries where borrowing a loan from a bank is quite easier. It enables you to make a down payment, get leverage on your capital, and eventually increase the overall return on your investment.

2) Tax-free Growth:

2) Tax-free Growth Buying a rental property which is highly speculative or uncertain in terms of returns in a dangerous game to play. The cash flow in this case is difficult to predict and hence, putting your investment at risk. However, benefit is almost guaranteed in the long run and at the least you should be opting for a tax-deferred strategy—in which you have to pay taxes at a future decided date rather than on the date in which it is incurred.

3) Tax Free Cash Flow:

3) Tax F ree C ash F low It is obvious that depreciations and interest deductions on mortgages makes your cash flow as tax free. Most of the times investors does not pay taxes on their cash and wait for capital returns on the sale of their asset in future.

4) Using Your Tax Payments Against Your Other Income :

4) Using Your T ax P ayments A gainst Y our O ther I ncome Depending if are an active investor or a real estate professional and your level of your income, there is a great chance you will not only earn tax free cash flow, but average tax deductions can be used against your other income. Be sure to discuss these pointers with the tax professional you have hired before investing you money.

5) Increase in Tax Deduction Strategies :

5) Increase in T ax D eduction Strategies Another great opportunity is that you can convert your personal expenses to potential business expenses. Let’s not forget that real estate investing is also a business. This means that travel expenses you incur when going out to review your properties, or payments to family members who manage your properties are deductible and hence, increase the tax benefits when it comes to cash flows from any future property sale.

6) See Real Estate Investing as a Part of Retirement Plan:

6) See R eal E state I nvesting as a Part of Retirement Plan Even the most highly accomplished entrepreneurs and individuals can be terrible savers. You might be rolling in money today but not necessarily would be the case if you failed to make significant savings for future. However buying a rental property is something that asks for regular commitment and maintenance. Undoubtedly you will always be grateful from future cash flow generated because of today’s investment . Therefore, it is advised to invest in rental properties apart from your regular business. However, do not expect the income generated to make you wealthy overnight. It takes time and a diverse portfolio in the real estate business to earn a nice profit.

A short presentation By Capital Concepts .:

A short presentation By Capital Concepts . Contact Us Address: 11200 Westheimer Rd #150, Houston, TX 77042 Phone : 713-651-9500 Website : http://4smartmoney.com/

authorStream Live Help