When a stock price goes down, you lose net worth. And so the nature of real estate invest in, specifically rental real estate, income property investing, is that the structure of the asset class is tilted towards an income stream. If a property drops in value, you've lost net worth, but you can still make money off the cash flow. Over the next 12 years, 14 years, at this point, howjes two thousand eight, 14 years ago? Am i doing that mathright? I believe so. Yo. 20 22, my goodness, over the next 14 years, we know what happened. We know how it recovered.
#373: How do people make money in real estate?
Many focus on rental income, but this is only one of five ways that properties create wealth.
We explain five surprising ways that real estate builds your balance sheet: cash flow, appreciation (market-based and forced), tax benefits, principal paydown, and instant equity at closing.
Why does this matter for long-distance investors?
If you’re investing out-of-state, you’ll need to choose a city or town. How do you decide? First, think about how you want to bias your returns. Do you want to optimize for cash flow? More appreciation potential? Identifying this will help you align your city/town selection with your financial goals.
If you’ve been thinking about investing in real estate – especially if you might invest long-distance – you’ll love this episode.
Enjoy!
For more information, visit the show notes at https://affordanything.com/episode373
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