If you’re looking to build wealth with real estate, you’ll want to consider a few perspectives.
1) What are my goals? Is it long-term capital appreciation or short-term cash flow? Everyone wants both but if you had to choose one, what’s more important. This will help you make the right decision on the type, quality, grade, and location of that asset.
2) Unique characteristics of Real Estate:
a. Appreciation: one of the few assets that have shown continuous appreciation over time.
b. Depreciation: One of the few assets that you can depreciate and offset some or all of the income from that asset which increases your wealth.
c. Leverage: Can be purchased with borrowed money. You don’t have to have 100% of the cash to buy this asset.With just 25% down you can grow your wealth.
d. Cash flow: can provide cash for investments or quality of life
e. Lifestyle: can be used for personal use or investment purposes
At The Ihara Team, we offer free “Investing in Real Estate” classes(link to webinars) for those who want to learn and grow their wealth with Real Estate. We help you with a free “Asset Performance Test” that allows you to understand the economic viability of your asset. We can provide you with a Capitalization Rate and a Cash on Cash analysis so that you can make an informed and analytical decision when investing in your future.
Contact us for a free asset performance test or for more information.