People consider real estate investment
Seeking safe and stable investments might want to venture into real estate. Real estate has strong potential to give good returns, and it remains popular. People know that there are numerous investment options. Still, it will take a long period before generating significant income returns. At the same time, it's easy to generate long-term passive income in real estate—the value of real estate changes over time.
#4 All Forums Contributor
- Plymouth, MI
Originally posted by @Dan Wynn:Seeking safe and stable investments might want to venture into real estate. Real estate has strong potential to give good returns, and it remains popular. People know that there are numerous investment options. Still, it will take a long period before generating significant income returns. At the same time, it's easy to generate long-term passive income in real estate—the value of real estate changes over time.
Actually, if I had to wait for a "long period of time" to get my significant returns, I might just as well find a different investment. REI can deliver significant returns quickly...and should, if done properly. This is along with the long term cash flow returns.
What this means is this. The REI entire cost is restricted to what comes out of their pocket...and nothing more, unless they have negative cash flow...which comes out of pocket, and increases the cost every month they are negative. Profits start, like in any business, immediately after all costs are recovered. The lower the cost (Down Payment), the faster the profits start. The higher the cost (higher DP, mortgage paydown paid by the REI, negative CF, etc...), the longer it takes to start making profits.
The goal should be, to recover that cost within a 2 (max. 3) year period, and reinvest it...repeating this goal over and over which generates exponential returns...and, since the cost was recovered from the first investment, all of the following investments are free...using the same cash (cost) repeatedly from the initial investment.