Pillars For  Success In Real  Estate Business

Acquiring debt is not usually something to encourage, however, in the case of real estate investing, debt can be a vehicle for building wealth.

Amortization

It is the process of spreading out the cost of a major purchase, such as a property, over time.

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Leverage

Leverage is borrowing to boost potential profits. In real estate, use a mortgage. If property values rise, it's profit. But if they decline, it's a loss.

Appreciation

Real estate values increase over time. Renting out property can help pay off the mortgage while property value appreciates.

Cash Flow

Cash flow is key in real estate investing, covering expenses with rental income. Positive income, less expenses = Positive cash flow. Vice versa for negative cash flow.

Tax Benefits

The biggest tax benefits of real estate investing are the ability to deduct depreciation and to deduct mortgage interest.

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