Better Investing in Real Estate

Buying real estate and keeping it, is simply better investing. There are few advantages to buying houses and quickly selling them. Purchasing property the TVREI way, will usually give you the cash you would derive from a quick sell, but offer you benefits to longterm ownership.

The taxes for selling properties within a year of purchase are enormous.

I can honestly say I have regretted selling every single property I have ever sold. Owning a rental property five years will give a very clear picture for my opinion on better investing.Even in down real estate market cycles, prices seldom decline below values of five years before. And when the market reverses, the upward climbs are at faster paces than down. Properties I purchased five years ago are worth considerably more now. It is just plain cruel to think of the current value of properties I sold ten years ago. Never sell unless it's absolutely necessary.

I know this is against some conventional wisdom...we will discuss this in more detail in a different section.

One of the biggest benefits of owning a rental property five years comes in the form of your real estate investing dividend, otherwise known as your rent. Like every where else, my market experienced downward pressure on property values. However, the rents continued to increase.

In fact, in down markets there is an increase in people who lose their homes. This creates more renters who are now competing for rental property. Better investing allows you to take maximum advantage of all points of the real estate cycle.

On average our rents are $400, per month, more than five years ago. That is a substantial increase. However, if you purchased your property at 60% of it's value, five years ago, the effect of this steady rental increase is tremendous....Your mortgage is low, but your income is increasing. That is better investing at it's finest.

Simply taking that increase and adding it to your regular mortgage payment, substantially reduces the time left to pay off your property.

Financially speaking, I cannot think of anything more gratifying than owning real estate free and clear of mortgages. The sense of accomplishment derived from writing that last mortgage payment is unparalleled.

From our experience, better investing is buying and keeping your investment property for the long haul. After five years, you won't even consider it.

Let's look at some detailed advantages to buying houses for strategic reasons....better investing in action.

Send your children to college: The average amount of cash from one real estate investment deal, done the TVREI way, is approximately $20,000. (yes...even investing for beginners) This would pay four years tuition for most good state colleges. The monthly cashflow should cover any remaining costs. This is especially true if you purchased the property, 3 to 5 years before the child began college. Buy one property for each child, and college becomes a non-issue.

Teach your child how to handle finances: If the child to whom you assigned the property is of age, (or as soon as they are) have them keep track of the expenses and income for the rental property and follow the value changes. Also take them to see the property investment. Have them continue to keep track of the property's financials through college. Even if they attend college out of state. At a pre-determined age or when they marry, give the investment property as a gift. Your child will be light years ahead of their peers financially and in terms of financial maturity.

Pay-off debt: Purchase several investment properties to pay-off credit cards, automobile loans, and all other consumer debt. Imagine eliminating all but your house payment. Many, many real estate investors begin investing for this purpose. The only remaining debt is their home mortgage and the investment property mortgages. If you purchased correctly, the investment property mortgages will be more than covered by your renters. Do not let it escape you that your renters are paying off you rental properties. What a life!

Pay cash for your next automobile: Purchase a property or two, using Time Value Real Estate Investing, to pay cash for your next car. My wife and I recently did this. Good bye car notes...forever!

Take vacations of a lifetime: Have you ever been on a Disney Cruise? Well, I took my family of four, my brother's family of four and my parents on the 8 day cruise. To this day, it was the most enjoyable vacation of my entire life. For my parents, it was their vacation of a lifetime. Words cannot express the joy I feel, from giving that memory to them. Use TVREI to properly invest in real estate. Then use better investing to make your dreams come true.

Cure the Paycheck-to-Paycheck syndrome: Buying real estate right, cures that illness. $20,000 from one deal immediately cures your sick bank account. Imagine what 2,3 or 4 deals will do. Sometimes, it's not about buying cars or going on lavish vacations. Sometimes, the ability to go out to eat or buy a new pair of shoes, without worry is a huge relief.

My family struggled tremendously before we achieved our first deals. We've even lost our home before. I remember sitting in my living room and reflecting, on a Thursday, after we had successfully closed our first deal. We could now catch up on a few bills, and still have thousands of dollars left. Tomorrow my family could go out to dinner and have a great time, without a financial care in the world.

It is now a tradition, that my family go out for a great dinner after every deal. It's not the only time we go out to dinner. But my wife and I always get a laugh because whenever we go out to dinner, the kids say "cool, we must have bought another property!"

I love my kids having a feeling of property ownership.

Use Time Value Real Estate Investing to achieve your financial goals. However, practice better investing to make your dreams come true.


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