(To read the prior posts regarding Real Estate Reasons To Invest select the desired post: 1-2, 3, 4-6.)
Number 7
Assignment of the agreement. You can assign the real estate agreement for a fee. If you are not interested in actually owning the piece of real estate you can negotiate a stellar deal and then sell or assign the agreement to another buyer for a handsome fee. You don’t even have to take possession of the property to make money from it. Sweet deal eh. But of course you want to have a contingency plan in place in the event you need to go through with the purchase.
Number 8
Little or No Money Down! You can buy a piece of real estate with little to no money out of your pocket. By finding the right type of seller (motivated) you can purchase real estate by taking over payments (make sure you understand the details of the loan you’re assuming).
Depending on your exit strategy (selling on a Rent-to-Own, or Lease Option contract) you can put down a little money to purchase and get a return of your initial funds while your tenant is renting and improving their credit and financial situation to be able to purchase the property from you at sometime in the future.
Another scenario is buying a deeply discounted property with a short-term loan and then refinancing to pull your funds back out to use again.
Number 9
Legally Pay Your Taxes Later. You can sell the investment property and purchase another one and legally defer any taxes on the profit owned. This means you get to use that money that normally would go to Uncle Sammy to make YOU more money. Why pay tax now if you can use the funds to accelerate your returns.
Number 10
Leveraged Wealth Generation. You can use other people to pay your mortgage payments on your real estate investments. If you have purchased right, you get to use tenant payments to pay your monthly payments associated with your property. So while they are paying the bank, you get to sit back relax and watch your assets grow in value. This growth in value comes one from the appreciation of the asset over time and two from the reduction of your principle on your mortgage over time creating more equity in your property.
So there you have it, just a few of the many, many, many different benefits of investing in real estate. There are also several very passive, secure ways to invest in real estate that I did not mention in the 10 Reasons (Click here to find out more.).
