Refuge InvestmentsDecember 7
Do you know how 90% of the world’s millionaires got rich? They started off investing in the real estate market. You can grow and protect your wealth through real estate, especially if you focus on a cash flow investment strategy.
Real estate investors that specialize in passive investments purchase cash-flowing assets that make returns immediately. These investors get to delegate asset management to experienced professionals and sit back while their income flows in.
Real estate is one of the best ways to get started with cash flow investing. Are you still curious? We’re about to present the top six benefits of real estate passive cash flow.
If you hold onto your investment, you’ll have cash flow for life. You won’t have to stress about the stock market crashing and wiping out your retirement funds. Instead, sit back, relax, and collect your ongoing income.
Real estate cash flowing investments allow you to compare historic incomes before purchasing. This limits speculation, producing a more predictable Return On Investment (ROI).
Comparatively, predicting future performance on the stock market has proven impossible because of dozens of uncontrollable variables. Among them, you have to consider consumer behaviors, competition, mispricings and readjustments, and manipulative hedge funds and short-sellers.
The best part about passive real estate investing? It isn’t a full-time job. Your professional investment partner manages the hard stuff, giving you the freedom and time to reinvest your cash flow income and create more passive earning opportunities.
From depreciation shelters to lower capital gains tax rates, real estate investment tax advantages are huge cash flow investors’ incentives . For example, your income from operating profits is typically offset by the same investment’s tax deductions that reduce or eliminate your tax liability for that income.
With real estate investments, you can receive your cash flow distribution on a monthly or quarterly basis. Whether you want to use it for living expenses or reinvest in a new venture, your cash flowing investment income is yours to spend as you like.
In stocks of other investments that don’t offer regular distributions, you must sell your asset to realize any potential income. And after fees and commissions, that investment’s performance is often severely impacted.
If the 2008 recession taught us anything positive, it’s that certain classes of investment real estate can be a dependable, safe haven during an economic downturn. Regardless of economics, people always need a place to live. And research has shown that historically occupied apartment properties have had the highest ROI during the past 50 years regardless of economic cycles.
A significant reason many investors switch from other investments to real estate investing during times of volatility.
Cash flow investing is a low-risk, high-return strategy for producing passive income. As long as you take advantage of the right tax breaks and reinvest your earnings, you’ll continue creating wealth regardless of what the economy throws your way.
Are you searching for a partner to help you get started with passive investing? Schedule a call with us today to learn how you can get involved with our passive real estate investments!