For some investors, the goal is to own properties “free and clear,” that is, with no mortgage debt. While this is a worthy goal, it does not necessarily make financial sense.
For example, consider a $100,000 property that brings in $9,600 per year in net income (net means gross rents collected, less expenses, such as property taxes, insurance, maintenance, and property management). The $100,000 in equity thus yields a 9.6 percent annual return on investment ($9,600, the annual net cash flow, divided by $100,000, the cash invested).
Three things you can take to the bank:
Here are 21 ways to compress the distance from where you are now to financial freedom:
With real estate, people often don’t understand how an investor is paid. I mean, stocks historically provide an annual rate of return of about 10% and are low hassle. Comparatively, real estate values historically only return about 5% annual appreciation…and with more hassle! Right? So then how can real estate be a good investment? Once you know the answer to this question and act, wealth creation begins. I’ll start showing you how right now.
Trump has a 10-point lead on Clinton when Americans are asked about which candidate will spur higher home prices. Primary results also suggest candidates weren’t popular in places where housing prices had a strong recovery.
Look, I’m going to level with you. I think we’re screwed.
A minister once gave a lecture titled “Acres of Diamonds.” He related the story of an Arab man who wanted to become rich. Informed by an old priest that he would find diamonds in “a river that runs through white sands, between high mountains,” the man sold his farm and set off on his quest to find diamonds.
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