We'll take a quick break to talk about how real estate compares to other forms of investing, including stock and equities investing. We're back. There is a second question, a very common question that many real estate investors want answered. And this question, like our previous discussion, applies both to long distance investing as well as local investment. Here's how that question rolls. Killkiki'm saying there are a bunch of ways to make money in real estate that are legal, but how do i compare that to stocks?
#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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