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John Jung, Coldwell
Banker King Thompson, Dublin, Ohio
Direct Line: (614)526-5692 Home Office: (614)793-2967
Fax:(614)889-1901
Email: FreeReport@JohnJungJr.com
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Free
Real Estate Investing Reports
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Why Invest in
Real Estate the First Place?
The
sad truth is that only 1 out of 20 Americans is financially independent
when they reach retirement. The rest are dependent on family, friends,
or charities, and millions exist at the poverty level . . . literally
waiting around to die.
If
you plan on spending all your money when you make it and retiring
on your social security, you need to wake up from your dreams!
Social security is designed to merely provide a supplement to your
investments and retirement plan. If Social Security is all you’ve
got, you are either going to have to continue working well past
normal retirement age, or be living a very meager lifestyle.
You
deserve more than that, and you can have it… with some financial
discipline and planning.
Why
not just put your money in a mattress or safe deposit box? Because
inflation will kill you. It will eat away at you money’s value,
actually making you poorer and poorer with each day that goes by.
For
those of you who need some explanation, inflation is simply the
general trend of prices to rise over time. Think back to 25 or 30
years ago. You could buy a nice new car for $5,000. A hamburger
for 20 cents. An average new house for $25,000. You certainly can’t
do that today. While the prices of some items are actually coming
down (computers, for example), the overall trend is up.
This
means that over time your money will buy you less and less. For
example, if inflation is running at 4% per year, you need to earn
4% on your money just to break even, more if you want to build wealth.
You want to invest in things that not only give you a good return,
but that also go up in value over time (appreciate).
Another
reason to invest in real estate is tax advantages. Most of
us are being taxed from all angles. We ARE NOT talking
about cheating the government or not paying taxes that are legally
due.
However,
prudent real estate investors will always structure their investments
in order to legally pay the lowest amount of tax.
This includes tax-free investments, tax credits (as in depreciation),
and tax deferral (as in most retirement plans).
Many
people invest for cash flow. A common goal is to create a
“money machine” that will eventually replace you as the primary
income earner. This means that instead of you working for money,
your money works for you!
Smart
investing will put you in the position where someday your investments
will earn more money each year than you do working at your job.
At that point you can retire and do what ever you want, or continue
to work and really sock away the dough – and build up some serious
wealth!
Think about this. If at age 40 you buy an income producing property,
say it produces just $500 per month. You take out a
15 year mortgage. ALL you are interested in NOW is to NOT having a
negative cash flow. Anything else is gravy.
Now you do this every six months (buy another property) for 5 years.
You have 10 properties producing $500 each. At age 55 your first two
properties are paid off and you now have $1000 per month
income ($500 for each property). The next year the same thing happens
and you have $2000 income. At age 60 you have $5000 per month or $60,000
per year income to 'supplement' your retirement plan, Social Security
and any other income you might have. If you would have done this for
7 years instead of 5, at age 62 you would be enjoying $7,000 per year
income or $84,000 per year. And that says NOTHING about the
$1.2 million dollars in real estate assets you now own, paid for by
the tenants.
The
main reasons for investing are:
-
Appreciation
-
Equity
Build Up
-
Tax
Advantages
-
Cash
Flow
-
Retirement
Or
stated another way, a great investment should have the following
qualities:
-
Beats
(or benefits from) inflation.
-
Someone
else pays for the property.
-
Gives
you tax advantages.
-
Provides
growth or cash flow.
-
Helps
your overall retirement plan.
Why
Invest in Real Estate
Investing in Central Ohio? Let Me Help You Today!
John Jung, Coldwell Banker King
Thompson, Dublin, Ohio
Direct Line: (614) 526-5692 Home Office: (614) 793-2967
Fax:(614) 889-1901
Email:
investinfo@JohnJungJr.com
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