Epic Real Estate Investing - The Silent Giant of Investments: Real Estate’s Steady Climb... | 1338

Episode Date: August 29, 2024

Have you ever marveled at how certain individuals seem to effortlessly accumulate wealth, basking in luxury and enjoying continuous cash flow? This episode reveals the often-overlooked secret behind their success: strategic real estate investments. Dive deep with us into why placing your money in real estate could be the game-changer you've been searching for. In today's episode, we explore the undeniable perks of investing in real estate—from generating steady monthly cash flow similar to a regular paycheck, but with the effort made just once, to the substantial tax advantages that can significantly reduce your annual tax burden. Real estate isn’t merely about buying and holding; it’s a smart strategy to increase your equity, decrease tax liabilities through deductions like depreciation and maintenance, and earn more through appreciation and rising rents. But there's more—real estate stands as a robust hedge against inflation and a tangible asset that diversifies your portfolio, lowering overall investment risks. Whether you're a seasoned investor or a busy entrepreneur looking for passive income avenues, this episode is packed with insights on how to leverage real estate for impressive returns without the day-to-day hassles of property management. Ready to transform your financial future? Tune in and discover how you can expand your investment strategy beyond the stock market and secure a prosperous and financially stable lifestyle through real estate. The opportunities are vast and waiting for you! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. Hello and welcome back to another episode of the epic real estate investing podcast. I am your host, Mercedes Torres, and I am super excited to be here with you today. Ever wonder how some folks just seem to keep getting richer, enjoying luxurious lifestyles, and like a steady cash flow without breaking a sweat? Well, there's a secret to it, and it's not what you might think. It's all about where they put their money, and you can do it too. Why do 150,000 business owners swear by the Beyonce business blueprint?

This secret has been hiding in plain sight. Uncover the secrets to protect funding and tax strategies and learn more about how to do it for yourself. So go to freeentity.com. That is free entity. Entity.com and learn the secrets of how to protect yourself from lawsuits, protect your funding, and take advantage of extraordinary tax strategies. That's freeentity.com. So, hey there, welcome back.

Today, we are diving into the world of real estate investments and uncovering why this might just be the smartest place for you to park your money. So why real estate? Well, let me just start off by saying it's all about cash flow. Earning from properties every single month just like a paycheck. But here's the beauty of cash flow through real estate. You only have to do the work once to acquire the asset. Now, that means that looking for the property, analyzing the numbers, purchasing it,

and figuring out what the best strategy is to purchase it, that you only have to do once. Now, in many cases, many of my clients, once they own the asset, they choose to have the asset managed by a property manager. That way, they don't have to deal with placing the tenants or having to fix a broken toilet or plumbing in the event something is to go wrong with the rental during the year.

So the idea is you do the work once and then you place a tenant once every two, three, four years. If you're lucky, some of your tenants may stay even longer. But the reality is the work to do that is far less than having to go to work every single day for your cash. But this is better because real estate, it tends to grow over time. And as you pay that mortgage down and increase your equity, all of the benefits come when you sell the property. And I shouldn't say all of the benefits come when you sell the property. You get benefits throughout the journey. But if you hold on to the asset long enough, it builds equity.

And when you go and sell that asset, you are likely to get a lump sum in your pocket. And speaking of benefits, let's talk about the tax perks. Real estate investors enjoy heaps of deductions that can save you a ton of money at tax time. Now, we're talking about depreciation, one of the many things I love, because generally, U.S. rental properties depreciate at a rate of almost 4%. It's like a 3.73% over 27.5 years. Now, the beauty of that is you get that deduction every single year so long as you own the asset. Imagine that.

I mean, it's huge. It adds up. But just take it a bit further. Imagine if you have multiple properties. I have several properties and these properties appreciate every single year and they also depreciate every single year. And then there's the maintenance. You can write the maintenance off, and you can even write off the interest payments on the loan. So if you own this property and you purchased it with a loan in place, every single year or every single month that you're paying interest to, you literally get to write that off at the end of the year.

It's like having a secret weapon against big tax bills. But here's the real kicker, appreciation, and I tapped on this just moments ago, the real estate value, it climbs over time. So that just means that if you buy a property today and you hold it, it is likely going to be worth a lot more when you decide to sell it. Now, the key here is to hold the acid. over time and to ensure that you bought the property correctly so that when you purchase it from the get-go, you are cash flowing. Now, this then gets even better over time because rents rise.

And so as rents begin to rise, your mortgage payment, if you purchased the property and kept it at a 30-year fixed, your mortgage payments stay exactly the same, but your rent continues. to rise. So that just means that your income rises. So it's a double win all the way around. And if you're worried about putting all of your eggs in one basket, real estate can be your diversification champion. So adding properties to your real estate portfolio can actually lower overall your risk and give you smoother returns, especially when other investments might be taking a hit. So, for example, if you are in one market,

and let's just say the price point of your properties, it's $100,000, and you have several properties in that $100,000 range. As you grow your portfolio, it is a really smart move to buy properties in different price points and in different locations within that same market.

So if you have a property in a $100,000 neighborhood, consider purchasing and growing your portfolio in other neighborhoods that perhaps the price point might be $180,000, thus the rent will be higher and a different caliber of tenant, and potentially even throwing in the mix a multifamily unit. So that is diversifying your portfolio within one, market that allows you to not only cash flow, but to evenly spread out your properties as well as the diversification within your real estate portfolio. Still not sold? Well, consider this.

Real estate, it's a tangible asset. It's something you can touch. It's something you can approve with your own hands. It's something that you can control. So it's making it a lot less abstract than stocks and bonds. You literally have no control over stocks and bonds other than choosing to invest in a stock or choosing to withdraw or sell your stocks. With real estate, you have all the control of your property. You can choose to live in it. You can choose to rent it. You can choose to make it a short-term rental or a long-term rental. You can choose to paint the house orange if you want, and you can choose to add additional streams of income in a property, for example, by creating a carport. If you create a carport, now you can charge a little bit more

in rent if carports are not a thing in the area. You have a lot more control over your real estate, then stocks, bonds, etc. And in times of inflation, guess what happens? Real estate often sees an increase in value, making it a solid hedge against inflation losing purchasing power. Now, think of that. In closing, real estate, it isn't just for the rich and famous or for full-time developers with options like reits, turnkey operators, purchasing through wholesalers and potentially real estate agents, anyone can get in on the real estate game. And leveraging the potential of you growing your real estate portfolio with leverage, it is tremendous.

It allows for impressive returns without having to manage the properties yourself. It's time to think beyond the typical investments of a 401k or an IRA or a stock market and consider how real estate can elevate your investment strategy and your creation for wealth. So dive into real estate because the opportunities are waiting. Remember, God is not making any more land. what we have and the universe is exactly what we have in order for the population to living. So if you purchase a real estate asset, everybody needs a roof over their head and are going to depend on reaching out to people that own properties so that they can live in them. That's it for today.

If you have any questions about how to inquire about starting to create your real estate portfolio, do not hesitate to reach out to us. Go to cashflow savvy.com, hit the contact us button. We will actually reach out to you if you send us a question or if you need clarification on what you have going on in your portfolio. That is cashflow savvy.com with two Vs. and let us know that you need help, we will be more than happy to reach out to you.

That's it for today. Once again, my name is Mercedes-Torres, and I look forward to catching you on the next episode of Epic Real Estate Investing Podcasts. Until then, bye. And that wraps up the Epic Show. If you found this episode valuable, who else do you know that might too?

There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them and ask them to click the subscribe button, when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home boy, we got the cash flow. This podcast is a part of the C-suite Radio Network. For more top business podcasts,

visit c-sweetradio.com.