Sep 10, 2019
The acronym is I.D.E.A.L. - where I = Income; D = Depreciation; E = Equity; A = Appreciation; & L = Leverage. These are the benefits of Rental Real Estate Investing and how you make money in multiple ways. This is how it's not unheard of to make a return of something like 50% with Rental Properties (or more); whereas you may be lucky to make 5% with other investments. Even if you are making 10% or 15%, even 20% with other investments - you can often do twice as good with well purchased, well located, and well managed Rental Properties.
So this episode of the... and Landlord Podcast is just to get you thinking about the many benefits and ways of making money as a Rental Property Investor... Does your investment in Precious Metals (Gold & Silver) produce an Income? Do you get Depreciation from your Stocks? Now maybe you have some "Equity" in your Stocks or Gold if they are now worth substantially more than you paid for them, so you might have some value Appreciation there - but was a Bank or other Lender willing to give you a loan of 80% of the purchase price? If there was any Leverage involved, it was only against the value of other Stocks you already owned.
Rental Real Estate is the only class of investment of which I'm aware that provides all of these I.D.E.A.L benefits. An investment that can pay for itself because it produces an income. Gives great tax benefits because of Depreciation and other expense write-offs. Builds Equity quickly through both Amortization (Mortgage Pay-down) and value Appreciation that is highly likely if you are buying where people actually want to live. And skyrockets your Rate of Return (ROI) by leveraging 80% of the asset price from a Lender, leaving you to only put in 20% - yet you are still 100% owner!
Rental Real Estate is the I.D.E.A.L Investment!