How Do I Make Money in Real Estate Investing?
Have you heard people talking about investing in real estate?
Ever wonder how they actually make money?
This strategy of investing is typically meant for the long term. I have clients that use this method of real estate investing to set themselves up for retirement, for their kids college funds, or to take their wealth building to the next level.
1️⃣ Principal Pay Down
Each Month your Mortgage is being paid by your tenant, this increases the equity in your home and pays your loan.
2️⃣ Cash Flow
When the tenant’s rent exceeds all of your expenses for the house, you start to collect an excess of money on a monthly basis.
Not only does the property appreciate in value so does the tenant’s monthly rent. Creating a compound effect on your equity and on your cash flow.
You can actually force appreciation by finding a home that is a little outdated and needing some upgrading so it can to be more appealing to that person willing to pay top dollar for a nicer home. Which drives you more equity and a greater cash flow.