To make money in real estate, the good news about it is if you look at what has happened to values over time, they tend to go up in value. There are some people don’t know what to invest in, what they do is they take their cash and they hold it and they put in the bank or they put under their pillow.
Cash is one of the worst and most hated investments of all time, why? Because our $ is not perfect in the market, It has a history of going down more than 3% every year, which means for every hundred of thousands dollar you have in the bank, you are loosing over 3000 a year, just by keeping it in cash, which means anything you put your money in need to be able to grow in value intend of losing value. So real estate is the amazing edge because it’s outpacing inflation.
2. Real estate is an investment that produces cash flow:
This is true, because when you, for example, let’s say you get a single family home and ruing it out for $1500 and maybe $200 for repair $1000 obligation to the bank every month and now you have $300 positive cash flow every month from that property,
3. Make money through Commission or Management Fees:
If you want to play a real real estate game, you will want to have realtor license, a loan officer license, title license, You can earn more money when you have one this license. which means when you buy a real estate property, there is a room for a double dip. Double dipping is very cool in real estate.
Which is the money you buy on the property, you get it in discount. If I have a real estate deal that I am doing that worth $100k, and ii get it for $80k, then I buy it 20% below market, which supposedly means $20k below market, that $20k is equity.