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:

John holds four degrees and two decades of technical education, and has extensive experience in the fields of real estate property valuation, mortgage finance, and home sales, and is the Broker-Owner of Coleman Tanner Realty 🏡 in Florida. John was recently admitted into the NYU film school’s 1-year online certificate program in Film & TV Essentials, as well as completed the 14-Day Filmmaker Academy by the modern tv commercial experts, Paul Xavier and Anthony Gallo. 🎥 He plans on shooting social media video commercials that documents and highlights the journey to success of many high performance attorney entrepreneurs, as well as lead an in-house film production company for his real estate practice, Coleman Tanner Realty. 🎬 Lastly, John aspires to self-produce independent films that will be a hybrid of the “film noir, murder mystery genre” and something new, futuristic, and aesthetically appealing to modern day film enthusiasts. (Ladies, he also enjoys romantic comedies and dramas too, - and he wrote a romantic novella titled Faithfully (available on Amazon) - so stay tuned!) When he’s not 🖥 online studying film production and marketing techniques, or watching movies and TV shows on the tube 📺 for inspiration, 🎼John also enjoys playing the guitar 🎸 and piano 🎹 in his free time.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.