Wealth Formula by Buck Joffrey

05: Should You Invest in Residential Real Estate?

Listen Later

This week’s weekly wealth widget is sort of no-brainer for most of us. However, if you are still sitting on real estate sidelines, this one is for you. Here are just a few reasons why you strongly consider investing in residential real estate.

  1. You own a real asset that does not fluctuate on a day to day basis depending on the “mood of the market”.
  2. People have to live somewhere. This is level 2 on Maslow’s hierarchy of needs. Residential real estate is an investment in something people need.
  3. There are substantial tax advantages that make most profits tax free. This IS NOT the case if you invest in a REIT so I personally do not recommend that.
  4. Although the IRS considers your property to depreciate (therefore giving you tax advantages), the property will actually appreciate in most cases over time.
  5. Your tenants pay down your mortgage. So…while you are collecting money on a monthly basis, your equity position in the property increases over time making your over-all yield higher than simply the cash that you are seeing on a monthly basis.
  6. You can use leverage…a mortgage to buy an asset and enjoy leveraged appreciation and amplified cash flow.
  7. Millennials are not buying houses. They prefer to rent. They are the LARGEST generation.
  8. You can invest in one of many “turn-key” services in various parts of the country essentially eliminating your risk of tenants, toilets, and termites on a daily basis.
  9. You can invest passively on bigger projects, get great returns, and still enjoy the cash flow and tax benefits as a limited partner without any legal exposure at all!
  10. Unlike money in the stock market, rental properties do not vanish over-night because of something completely related to your property.

    11. That’s just a few reasons to invest in real estate. If you want more reasons to buy residential real estate, listen to his oldy but goody: 002: The Real Story Behind Real Estate – Wealth Formula

    ...more
    View all episodesView all episodes
    Download on the App Store
    Wealth Formula by Buck JoffreyBy Buck Joffrey
    • 4.6
    • 4.6
    • 4.6
    • 4.6
    • 4.6

    4.6

    401 ratings

    More shows like Wealth Formula by Buck Joffrey

    View all
    The Real Estate Guys Radio Show - Real Estate Investing Education for Effective Action by The Real Estate Guys

    The Real Estate Guys Radio Show - Real Estate Investing Education for Effective Action

    711 Listeners

    Creating Wealth Real Estate Investing with Jason Hartman by Jason Hartman

    Creating Wealth Real Estate Investing with Jason Hartman

    537 Listeners

    BiggerPockets Real Estate Podcast by BiggerPockets

    BiggerPockets Real Estate Podcast

    16,767 Listeners

    Rich Dad Radio Show: In-Your-Face Advice on Investing, Personal Finance, & Starting a Business by The Rich Dad Media Network

    Rich Dad Radio Show: In-Your-Face Advice on Investing, Personal Finance, & Starting a Business

    3,853 Listeners

    Real Wealth Show: Real Estate Investing Podcast by Kathy Fettke / RealWealth

    Real Wealth Show: Real Estate Investing Podcast

    399 Listeners

    The Best Ever CRE Show by Joe Fairless

    The Best Ever CRE Show

    990 Listeners

    Get Rich Education by Real Estate Investing with Keith Weinhold

    Get Rich Education

    608 Listeners

    Passive Real Estate Investing by Real Estate Investing with Marco Santarelli, Investor and Entrepreneur.

    Passive Real Estate Investing

    976 Listeners

    Main Street Business by Mark J Kohler and Mat Sorensen

    Main Street Business

    592 Listeners

    Tax Smart Real Estate Investors Podcast by Hall CPA

    Tax Smart Real Estate Investors Podcast

    414 Listeners

    The WealthAbility Show with Tom Wheelwright, CPA by The Rich Dad Media Network

    The WealthAbility Show with Tom Wheelwright, CPA

    518 Listeners

    Ken McElroy Show by Ken McElroy

    Ken McElroy Show

    722 Listeners

    Rebel Capitalist News by George Gammon

    Rebel Capitalist News

    1,031 Listeners

    The Lifestyle Investor - Investing, Passive Income, Wealth by Justin Donald

    The Lifestyle Investor - Investing, Passive Income, Wealth

    288 Listeners

    PassivePockets: The Passive Real Estate Investing Show by PassivePockets, Jim Pfeifer, and Left Field Investors

    PassivePockets: The Passive Real Estate Investing Show

    137 Listeners