Real estate investment takes time, effort and patience. Whether or not it is right for you depends on your current finances, your personal goals and your vision for the future.
However, when it is done well, it is an effective wealth-building tool that can benefit you and your family for years to come. A brick and mortar investment has many advantages. A place to live is a basic need, so real estate investments tend to be more stable than stocks or bonds.
Changes in equity happen over years – not days – so properties can often play a part in an overall portfolio as a hedge to the stock market. Real estate also has the potential for a high return, especially when it is planned over the years. Below are the reasons many of our clients invest in real estate.
Pay for your children’s (or your grandchildren’s) college education.
One of the easiest ways to pay for a college education is to buy a rental property when your child is young, and to put the property on a 15-year loan. The increase in the property’s equity will help fund, or even fully fund, your child’s college tuition.
Create “wake-up” money or a steady flow of passive income.
Passive income is money earned on a regular basis that takes little effort. Real estate can easily add thousands of dollars to your yearly income. Using a qualified Property Manager can be one way to reduce your effort and maximize your passive income.
Fund your retirement and provide a steady flow of income during those years.
Purchasing rental properties is a long-term investment. Real estate rental rates tend to move at the pace of inflation, which helps protect your investment over time. When you reach retirement, you benefit from a steady stream of income and the equity that your properties accumulated.
Leave a legacy for your family.
There are many tax benefits involved with leaving your real estate investments to your children, or other loved ones, depending on your personal estate portfolio. If you plan effectively, you can achieve all of these goals over time through leveraging your current portfolio to acquire new properties.
What if…
You purchased 10 houses 15 years ago at $70,000 each and financed them on 15-year loans? Today, your houses would be free and clear. Each home would be worth approximately $100,000, which means that your real estate portfolio would be around $1,000,000. Your houses would probably be earning you an estimated $8,000 – $10,000 in cash per month
Ready to get started?
We strongly encourage you to consult with an attorney and an accountant before making any real estate investment purchase.
We also suggest that you set your team of experts, so you can rely on them throughout the process. Contact us and we can connect you to a wide variety of resources, including property management, expert Realtors, knowledgeable loan officers, and successful investors.
Ruhl&Ruhl Property Management
Maureen Linnabery Realtor and Property Manager
Licensed In IA, IL
(309) 738-0234
Ruhl Mortgage
Jane Schneider
President
(866) 441-1862
Nelson Brothers
Scott Nelson, CIC President of Business Operations
(563) 323-9233
Ruhl Commercial
5111 Utica Ridge Road
Davenport, Iowa 52807
(563) 355-4000