Congratulations! You have taken your first steps
towards becoming an informed member of the real estate world. I have been in
the real estate profession for several years. I hold a real estate brokers
license, an avid real estate investor, and a real estate instructor. Throughout
those years I have discovered two common denominators. First, being a landlord
is not for everyone. Second, real estate investing has made more self-made
millionaires than any other industry. An investor need not have a college degree
or prior experience. It only takes a little money and a lot of ambition.
America’s next self-made millionaire could be you.
Why did I write this book? If you are like me you
have purchased every book available about real estate investing. The problem
with most books is they are written for investors of large real estate
investments such as 100-unit apartment complex’s or commercial property. This
book is for the small investor that owns single-family homes or small
multi-units.
Whether you already own rental property or you are
looking to do so, this book is for you. I hope after you have completely read
this book you will know if the life of being a landlord or investing in rental
property is for you. I cannot stress enough that knowledge is power. This book
will give that knowledge.
Why Owning Real Estate Is The Ultimate Investment
Single-family homes are still the most popular form
of residential property in the United States. According to the U. S. Census
Bureau, 10 percent of single-family homes are used as rental property. Most are
self-managed; however, there is a trend toward hiring professional management
companies.
After reading this book, you will have discovered
that owning rental property is not for everyone. However, if you are willing to
take the plunge, the rewards far out weight the risk.
What Does The
Book Include
This book is a step-by-step plan for small real
estate investor’s. It contains everything a novice or experienced landlord
would need to know. It includes:
- What it takes to be a landlord;
- How to self-manage rental property;
- Financing available for rental property;
- Coaching you through your first rental;
- Fair housing issues;
- How to select tenant’s;
- Rent and deposit issues;
- The rental agreement;
- Environmental laws and required disclosures;
- Maintenance;
- Handling problem tenants’;
- Handling tenant departures;
- Keeping the books and records;
- Taxes and insurance issues;
- Increasing your cash flow;
- Dozens of forms and disclosures.
Little Or No Money To Start
You have heard it before on the late night
television advertisements claiming you can achieve financial independence
through real estate investing. There is some truth to their claim. The beauty
of real estate investing is it bucks the old saying, “it takes big money to
make big money.” Big money, no! Some money, yes!
Tax Advantages
Investing in real estate offers many tax advantages
for the small investor. You can deduct expenses, depreciation, and current
capitol gains rates for real estate investors are favorable. Remember, owning and
managing rental property is a business. Therefore, you are allowed to deduct
all operating expenses against the rental income.
Extra Monthly Income
Some of the most powerful rags-to-riches stories
come from real estate investors. The majority of single-family small real
estate investors are middle-class working Americans trying to increase their
monthly income. Millions have discovered that investing in real estate can
fulfill their income objectives. For many, what started as a part-time in
devours blossomed into a rewarding full-time small business. Whether you are
looking to increase your income an extra $100 a month or $15,000 a month,
owning rental property can help you achieve these goals.
Appreciation
Appreciation represents the increase in value of an asset
which in this case is real estate investment property. For example, a property
purchased 5-years ago for $50,000 is now valued at $100,000. The property has
appreciated $50,000. That is precisely why investing in real estate is a
popular investment because it can produce monthly income and property values
generally increase.
Essentially, the longer you own a property the more
it increases in value. It is true however, some parts of the country experience
short-term declines where property values decline. The same is true of the
stock market. However, just like the stock market, if your investment strategy
is for the long-term, the rewards are endless.
Build Your Retirement Nest Egg
Investing in real estate is one of the best and most
secure methods to achieving financial independence. Obviously, the earlier you
start investing the better the results. Buying and holding the right investment
properties is an excellent way to hedge inflation, take advantage of the tax
benefits, and secure your retirement.
The Financial Benefits Of Owning Real Estate
Real estate investors have the ability to create
their own real estate empires with only a small cash investment. For example,
you may purchase a rental property for $50,000 with a $5,000 down payment and a
$45,000 mortgage from the bank. If the property’s value doubles in 10-years,
you have turned your $5,000 investment into $100,000. Future appreciation is a
key consideration in an investor’s decision whether or not to purchase a
property.
Using Existing Retirement Money
Few people are aware that they can invest in real
estate using money from a self-directed IRA. A self-directed IRA allows account
holders to direct their own investments. An investor can buy, sell, or buy
rental properties while deferring all their capitol gains. The IRS allows an
investor to use retirement money to buy any form of real estate including land,
condos, commercial property, and rental property.