Start Building Wealth With REAL ESTATE!
When it comes to acquiring wealth, achieving financial independence is a key component. How do you achieve financial independence? We all probably have a different definition or dream in our heads, but to keep it simple, it’s when your passive income and your income from your portfolio are greater than your expenses. The key to reaching this point is to start investing wisely.
Why real estate?
Real estate has outpreformed the stock market
Many people choose to invest their money in the stock market. And while stocks can be a lucrative way to improving your financial situation, there is a better method. Stability is key, and stocks just can’t hang with real estate. When you purchase real estate as an investment you can easily get more for your money. In many cases, you will find a property and purchase it for much less than market value. For example, buying a property for $125,000 when the after repaired value is actually $205,000.
One of the best reasons to invest in real estate is leverage. With stocks, $125,000 will buy you exactly $125,000 worth of stocks, no more, no less. However with real estate, that same $125,000 can easily buy you as much as $750,000 worth of property, leveraged and putting 20% down. If both of these investments increase in value by 10% you will have only a 10% return on your stock money and a 50% return on the money you invested in real estate.
Use your 401(k), IRA or HSA to purchase TAX FREE investments
The law allows your 401(k), qualified HSA plan or IRA to own just about any kind of real estate. You can invest directly in property: single family and multi-unit homes, co-ops, condos, apartment buildings, even improved or unimproved land.
You can invest indirectly in real estate investment trusts, but I'm not wild about these for retirement because their overheads are too high.
If you buy a property for your IRA, the income and appreciation normally builds up tax-free until you start to take withdrawals. Why hasn't my stock broker told me about this?Let's consider the question for just one moment. When your stock broker started working for you, he knew your investment into the stock market would make him a residual income. Now there is nothing wrong with your broker making an income, he is working to increase your investments. But a stock broker is tied to stocks. Selling you his stock package is the only way he can get paid. Even though he knows you can use your 401(k), IRA or HSA for real estate, he isn't going to promote it, because we will not profit from it. What if I don't have a 401(k), IRA or HSA, what's next?
Relax. There are still tremendous benefits of owning real estate as an investment. Owning a real estate investment opens you up to thousands and thousands of dollars worth of tax deductions each year. The car you drive, the cell phone you use, the internet you surf can all become a write-off.
Using a 401(k), IRA or HSA is not the only way to profit in real estate investments. There are multiple financing options when it comes to investments. Let's discuss your options.
Send me a quick email if you have questions, or would like more information.
Call Kyle Ashworth, 435-790-2544
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