LY Med's video: 20 Reasons To Invest In Real Estate 1 3 Investing Rx Ep 8

In this three part video, we are going to talk about real estate investing – one of the pillars of investing. We’ll talk about the good, the bad, and the ugly. But this first video will quickly the highlights - 20 in total! These are: 1) Home ownership: we all have fundamental needs like food, water, and shelter - this is no different. It's nice to have a home to call your own. 2) Owning physical asset: Real estate investing provides you with a physical asset that can grow. You are physically buying land and a home. 3) Buy vs rent: when you buy, you are not wasting your money on rent. 4) Possibly cheaper: there are cities where rent is astronomical, and if you crunch the numbers, it may be cheaper overall to just buy. 5) Demand: homes have historically always been in demand. Investing in something that is always in demand is good . 6) Diversification: having different asset classes is always a benefit. 7) Long term appreciation: driven by supply and again near constant demand, real estate has always gone up over time. 8) Source of income – investing in real estate and renting it out, has been a tried and true way to generate income. 9) Increase in net worth: owning a home is possibly the largest purchase you will make and the biggest asset to your net worth. 10) Inflation hedge: home prices have historically outpaced inflation. THis protects your asset from losing value. 11) More control: you have more control over your investments, including rent, tenets, location, price, etc. 12) Leverage : this is using borrowed money to increase your returns. One of the most common ways to use leverage to your advantage is the BRRR method. This is where you buy, rehab/repair, rent, refinance, and repeat. This is a way to: 13) Maximize returns with a small amount of money as well as 14) Expedite net worth: again you can rapidly own multiple properties and increase your portfolio. 15) Alternatively, instead of using that refinance money on another home, its a tax free lump of money that can be used elsewhere. 16) Let's talk tax benefits of real estate: One of the big one is selling your property, which can shelter $250,000 ($500,000 if you're married). 17) Anything over this qualifies for long term capital gains tax which is often less than your regular tax bracket. 18) Depreciation: so your investment portfolio increases, your real estate appreciates, but you can technically say you face “depreciation” which helps reduce your taxable income. 19) Deductions: much of the money you spend investing in real estate can be written off such as interest, property tax, insurance, repairs and even office space or travel if you have an entity like a LLC. 20) Tax advantaged income: real estate income may not be subject to FICA or self-employment taxes. There you have it. I just talked to you about 20 pretty amazing reasons why real estate is a great investment. In our next video, I'll take the other side and I'll talk about why it may NOT be a good investment. For that, I don’t really need 20 reasons, I only really need one – and that’s debt. I'll catch you on that next vid. Disclaimer: I am not a tax professional or financial advisor. This is for educational purposes. Please do your own research and make your own independent financial decisions.