Investing In Real Estate: Is It Worth It?
Whether you’re looking to start your entrepreneurial journey or feel enthusiastic about building generational wealth, investing in real estate may have crossed your mind. But for various reasons, you might feel skeptical about investing in commercial real estate and have questions regarding its prospects.
For starters, real estate investment may seem tricky and a complicated process. This is why many people hesitate to invest in real estate. But with some research, a little guidance from the experts, and a competent broker on your side, you can make real estate investment your side hustle (or a full-time career).
So begin your research from this blog and read four compelling reasons that make real estate investment well worth it.
The secret to most people’s ever-growing generational wealth is maintaining a low taxable income. Real estate investment allows you to manage the loss of taxes with real estate. Based on the commercial property type, there are numerous tax incentives for you to benefit from.
And if nothing else works for you, you can count on a 1031 Exchange to gain tax benefits on your real estate profits.
If you have $10,000, you can only buy goods worth $10,000. But with real estate, you have a wide range of commercial property loans that allow you to leverage your funds. This means that if you have $10,000 and you want to buy a property worth $100,000, you can do so with just ten percent of your own money.
The rest you can easily acquire through commercial property loan lenders who’re keen to take the real estate property as collateral against the loan.
In 2022 alone, real estate prices in the U.S. have increased by 55 percent. This increase in property value is referred to as appreciation, reflecting an increase in rents and reselling prices.
Steady Cash Flow
Cash flow refers to the money an investor is left with after paying his taxes, mortgages, and maintenance expenses. As real estate prices continue to increase in accordance with inflation, your cash flow will always remain steady. Further, the tax benefits and mortgage payments will help build your equity and wealth alongside.
Secure Commercial Property Loans Now
If money is the only thing stopping you from venturing into real estate investment, reach out to us at Commercial Private Equity. We’re a hard money lender offering asset-based business loans and hard money loans for commercial properties. Connect with us to learn more.