Posted in Uncategorized

Pros and Cons of Real Estate Investments

Here’s 5 Advantages:

  1. High rate of return, typically better than stocks or bonds;
  2. Tax shelter (depreciation, 1031 exchanges, and capital gains exemptions);
  3. Hedge against inflation;
  4. The power of leverage: making money with OPM;
  5. Equity!

Here’s 5 Disadvantages:

  1. Illiquid (not a quick cash option);
  2. Local market risk (casualty from storms, changes in jobs or government regulations);
  3. Requires expert knowledge (contractors, engineers, attorneys, banks, realtors, title insurance);
  4. Asset management expenses, and
  5. Risks (on-site, local market, regional, national, and international.

The tv shows make real estate investing look easy and glamorous, the reality of it is – it is not easy or glamorous.

Yes, you can make good money if you do it under the right conditions and you should own real estate, especially if you are currently renting.

You’re better off building equity and taking advantage of deducting the tax interest payments from your taxable income, than paying someone else’s mortgage off (rent).

In conclusion, with a decent plan of action, using OPM, you could fund your retirement lifestyle far better than relying on interest from your own savings and depending on social security.

Go, buy some real estate!

Author:

Bio: Entrepreneur | Speaker | Author | Instructor I like to think of myself as a modern day polymer, a "Renaissance Man." It is impossible for me to stick to any one thing when I am fascinated by the riches of the world (and I don't mean money), but I'm not interested in being labeled a "Jack of all trades." I have thoughtfully chosen to focus my energy on a few trades: military service (from ages 17 to 27), performing arts (acting, in both film and theatre, and music), entrepreneurship (real estate sales, mortgage finance, and appraising), education (K thru 12 and online real estate course creation and instruction), law, writing (I have published a few books, from pedagogy to romance, to network marketing (my present work-in-progress), and speaking (so far I have had the privilege of being an alumni guest speaker at two university events. Current Status: I am the Broker-Owner of Coleman Tanner Realty in Florida, as well as the Executive Director and Chief Legal Officer of REX Cinema Productions, both located in Jacksonville, Florida. History: These are some of the titles I have/had in my life journey: Student, Actor, Musician, Drama Club Director, Author, Content Creator, Soldier, Sailor, Sales Associate, Store Manager, Appraiser, Real Estate Broker, Mortgage Broker, Attorney (non-licensed), Teacher, Dept. Chair, Executive Director, CEO, Father, Son, Brother, Cousin, and Nephew. Personality: I am purpose-driven. I love most people (despise some, though I try to mask it and eliminate it from my being.) My favorite color is blue, my favorite number is 3, and my favorite music is smooth jazz. I like cigars, bourbon (Jack Daniels) and scotch (12 year, single malt), wine (mostly red) and craft beer (mostly from Belgium and Germany). I LOVE to travel. Future Aspirations: When I grow up, I'd love to own a yacht so that I can more off the coasts of CinqueTerre, Italy and Marseilles, France, a luxe condo in downtown Miami, and a small Tuscan Villa on the water in Ponte Vedra Beach (or maybe Fernandina Beach, Sea Island, St. Simon's Island, or Jeckyl Island - pretty much somewhere in north Florida so my family and I can enjoy sitting by the fire pit outdoors while enjoying a good glass of wine, baked Brie, Manchego cheese, and prosciutto, and engage in excellent conversations.

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