Real estate isn’t just a great place to make money. It’s a great place to make a lot of money. You can certainly make impressive returns on the stock market, and you can do very nicely, thank you on the foreign exchanges, but no investment tool comes close to the simplicity and the returns of real estate. This is what you can get when you put your money in bricks and mortar:

• Increasing returns.  When you purchase property as a source of income, your mortgage/debt service remains fixed for a specific number of years. Your rents though, will increase constantly throughout that same period.  For example, if you had a fixed fifteen-year mortgage, your payments to the bank would be exactly the same each month for fifteen years. The income from your tenants however would rise annually. That’s a guaranteed pay rise each year for fifteen years!

• Tax benefits.  The tax benefits from real estate investing are almost endless.  Depreciation, expenses, long term capital gains, historical tax credits and 1031 Exchanges are just some of the things that can increase your income while reducing the amount you pay to Uncle Sam. Do your homework and find an accountant who is up-to-date with the current real estate tax laws.   

Tip:  Never purchase a property solely for the tax benefits. Tax laws change all the time. Tax savings is a bonus for the investment and should not be included in any calculation. Your property must be able to support itself. 

Property is concrete.  Real estate has a use. You can see it, feel it and, in the worst-case, move into it. Stocks and bonds rely on the value of what they represent.

Tip:  When purchasing a property make note of its “permitted use” listing at  the local zoning department.  You may be able to convert its use without a change of zoning. 

• Stable growth over time. Over any long-term period, real estate has consistently enjoyed stable growth.  Like any investment, there will be peaks and troughs, but in the long run, real estate has almost always shown solid appreciation.  

Tip: Never buy property that you wouldn’t live in. Owners who don’t feel pride in the property they own are more likely to neglect it, resulting in depreciation. 

• Professional expertise. As a real estate professional, you’ll come to know the trends, pricing and potential value of property.  Knowledge is the key to successful investing and you’ll be able to take full advantage of what you know.  You’ll be the first to see the inventory, and the first to snap up a great deal.

Tip:  When you show a lot of property, you come to learn what buyers want.  You get ideas on design and decorating, and you hear buyers’ objections.  This is first-hand information that can do wonders for your marketing. 

• Proven success.  A very large percentage of the world’s wealthiest individuals have built their wealth with real estate. Many others have put their wealth in real estate. Real estate investing is safe and profitable.