I came onto steemit with a plan to teach real estate investing. That focus has been shifted quite a bit as I went down the steemit and crypto rabbit hole and have been leveraging the crap out of my trading background.
I'm Still Doing Real Estate Though!
I supposed I realized it's been some time since a real estate related post because I was at my monthly real estate coffee meetup. A bunch of people, new and experienced investors alike show up a this coffee house in Delray Beach and talk real estate investing for a few hours.
So let me tell you my...
1. Principle Paydown
When you purchase a property using a mortgage your tenants are the ones paying that mortgage down for you.
So whether the value of that property goes up, down or sideways you are building equity in it as the balance of the mortgage gets paid off.
2. Leverage (but conservative leverage)
How many other investments are there where you can control a $100,000 asset with just $20,000 of your money? (aka - putting 20% down)
The list is not long and the beautiful part is it amplifies your returns compared to something you cannot leverage.
For instance - if you buy a 100K property with 20K down and value of the property rises to 10% you have no increased your net worth by 10K.
However, if you were to use 10K for an investment you cannot leverage and it went up 10% than you have only increased your net worth by 1K.
3. Appreciation
This is just the icing on the cake because I never bank on this. If it happens then that's just lovely, but at the same time if I "buy right" so the property cash flows I do not have to worry about appreciation or not.
Conclusion
That is the key though, you must buy right and understand the numbers to plug into a property calculator when analyzing deals.
If you do not have a property calculator then download mine: https://scaredycatguide.com/
If you do not know what it is to "buy right" well, to be honest - read my book!
Best Regards,
