Nov 19, 2020
What Are the Benefits of Investing in Real Estate?
As a real estate investor, you open a whole new world of possibilities for your business, the real estate market, and people in the community – all while improving your financial situation. While it’s easy to get excited about making money in the world of real estate, you can get just as excited thinking about how your business benefits others.
The bottom line is real estate investment is crucial to improving residential communities and commercial properties in your area. If no one takes an interest in improving a home or business by fixing it up and reselling it in better condition, the community pays the price. Old buildings and worn-out properties reduce surrounding real estate values. Eventually, people take their families and businesses elsewhere.
In addition to financial stability, real estate investing has some other benefits that you may not have thought of.
Real Estate Investors Help Local Communities
Have you ever wondered what goes into erecting a house or business? If you think about it, there are endless industries that benefit from real estate investing. Renovations bring together contractors, designers, plumbers, electricians, realtors, building manufacturers, interior designers, appraisers, inspectors, painters, landscapers, and an array of other professionals, all who depend on investors for the next building project.
Real estate investors also help the community by increasing property values and beautifying neighborhoods. The more attractive a town looks, the more pride people take in preserving their communities. Healthy, vibrant communities also bring in more business and families, which stimulate the overall economy – all because you, as a real estate investor, decided to fix and flip and house.
The Government Offers Incentives for Real Estate Investors
One of the biggest advantages of being a real estate investor is that you can take advantage of grants, tax benefits, and other incentives that are provided by local, state, and federal agencies. For instance, you can receive sizable grants from the HOME Investment Partnership program, Social Impact Partnership, Neighborhood Stabilization Program, or the Real Property Investment Grant Program.
The tax benefits available from state and local governments are almost endless.
- Short and long-term capital gains
- Capital gains home exclusion tax benefit
- Self-Employment or FICA tax exemptions
- Depreciation tax deductions
- The 1031 Exchange
- Tax-free borrowing or refinancing
- Opportunity zone incentives
In essence, the government will reward you for improving communities by buying and selling real estate. When you make the community a better place to live, you receive full government support.
You Help Homeowners Get Out of Problem Properties
Property owners who want to sell their house or property fast are often looking for solutions to difficult situations. A person going through a divorce, foreclosure, bankruptcy, or probate needs a real estate investor who can close a real estate deal fast without incurring a great deal of expense. They can’t find this type of opportunity by hiring a real estate agent or doing a For Sale by Owner (FSBO).
When you approach a seller and make a fast cash offer on their home or business, you may be the very person who provides the solution they were looking for. Paying cash for a house and closing within a few days can help them pay off their mortgage, save their credit, or relocate without any attachments. You are providing a valuable service to sellers with immediate needs.
You Provide Affordable Housing for Those Who Cannot Afford It
Even in periods when unemployment is low, the median income of low to middle-class families does not necessarily increase. As a result, the demand for affordable housing is always high. The problem is that affordable housing is in tight supply. Sadly, many landlords take advantage of the situation by irresponsibly increasing the rent.
As an investor, you have an opportunity to create affordable housing for families who cannot afford it. You can convert run-down houses, apartments, or condos into livable spaces without jacking up the rent. Furthermore, you can learn how to create affordable housing that is cost-effective and even lucrative. When you care for your tenants by offering affordable housing, you are more likely to get tenants who are loyal and will take care of the property.
You Make Money and Have Fun at the Same Time
Name any business that allows you to decide your income while having fun at the same time. While there may be some out there, few businesses can give you the satisfaction of helping others and creating wealth for yourself at the same time. Ask any successful real estate investor, and they will tell you that they look forward to waking up each morning and making a real estate deal.
There’s something unique about negotiating a real estate deal that brings a tremendous amount of fulfillment and a sense of accomplishment. Real estate investment is empowering and gives you a sense of purpose and direction in your life. You become a productive member of the community. Plus, your role in helping others in your area is firmly established.
You Can Be Successful in Real Estate Investing
Through our real estate training system, you can make your first $100,000 part-time in real estate regardless of your current circumstances. You simply need the ability to follow our proven system and use the resources and tools available. How can you get started?
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