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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 W. Tanner became a published author in 1994 with a poem titled “Above the Sea.” In 2012, he wrote and self-published a modern fiction novella entitled “Faithfully” and has since published four other fiction and nonfiction works on Amazon's CreateSpace and Kindle Direct Publishing, including his recent publication titled “Entrefluential Networking in Real Estate” (available at https://www.amazon.com/dp/B086VFV4SN), a self-help textbook on advanced real estate marketing and brand development strategies. John holds a Juris Doctor degree from Florida Coastal School of Law, a Master of Science from Florida International University, a Bachelor of Science, with concentrations in literature and computer science, from Excelsior College, an Associate in Arts from Miami Dade College and has extensive experience in the fields of real estate appraisal, mortgage finance, and sales. He is the Broker-Owner of Coleman Tanner Realty in Florida, as well as the Executive Director and Chief Legal Officer of REX Cinema Productions.

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