6 TIPS FOR YOUR REAL ESTATE INVESTING JOURNEY

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6 TIPS FOR YOUR REAL ESTATE INVESTING JOURNEY
1. REAL ESTATE IS ALWAYS A TWISTING JOURNEY
Nothing goes according to plan. The key is to be
flexible and to continue to look at
opportunities around you. 2. YOU DONT LOSE
MONEY TILL YOU SELL
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As long as you dont sell you havent lost money
if your rent is covering your mortgage. This is a
big advantage of income properties home buyers
who buy cashflow negative properties with
leverage and rely on appreciation to generate
returns (which is why a lot of investors
consider this speculating) can be devastated if
the market takes a downturn, but properties that
generate a nice cash flow every month arent
affected. 3. BUSINESS NOT A CHARITY
This is a business. You MUST make money to
succeed. Do not let anyone make you feel bad
about being successful and making a profit.
Toyota, Safeway, Target, and McDonalds all make
profit and so should you. Do not let your tenants
or anyone else make you feel bad about being
successful. 4. THERE WILL BE ULCER INDUCING
MOMENTS
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Landlording will have its moments. A tenant will
leave the house a mess at move out. They will
try to break their lease. You will have to stand
up for your house. No one care more about your
house than you do! Just dont jump ship during
the low moments. Stick will it and wait it out,
as it does get better. Ah, but there will be
moments. 5. HAVE A FANTASTICALLY EXPLICIT LEASE
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If it is not written down it does not count. The
more explicit the lease the better protection
and reference. 6. TAX ADVANTAGES
There are many tax advantages to owning rentals.
From deducting all the expenses, claiming
depreciation, capital gains, to being able to
1031 the rentals into a like kind exchangethere
are many benefits. FINAL THOUGHTS Owning rental
property or any kind of real estate is
unpredictable and can have huge volatile swings
like any investment market. The key is to have a
plan and stick with it.