Ral: Investing in real estate is not a get rich quick strategy. It's very much of a get rich slow it takes time, but the long term fits outweigh many other options that we have available to us,. Oh ka. So let's talk instant equity. What is that? Can you define it? Let's start with equity first. Equity is the value of the home that you actually own, in excess of the loan. When i want to buy a property, i make sure i'm buying it for a lower price than what the market commands.
#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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