Frequently Asked Questions
Isn't it
risky to buy properties
out-of-state?
Not really. It is better to buy a profitable
property in a good area in another State than to buy an
unprofitable property next door. It is always important
to look for the areas that show the most income, either
through cash flow, appreciation or both. Where they are
is irrelevant. How they perform for you is everything. ye
help you find the best properties in the best areas to
meet your investment goals.
How can I
manage out-of-state properties?
We will help you find a professional property
manager to handle it for you. For a small fee, your
property manager will
- Prepare your property to be
rented
- Advertise your property for
rent
- Show the property
- Screen prospective tenants
- Rent the property
- Collect rents and forward the money to
you
- Send you financial reports on your
property
- Handle maintenance issues
- Deal with tenant issues
- Evict tenants when
necessary
Why is real
estate a better investment than
stock?
Throughout human history, Real Estate has been
the #1 way people have gotten wealthy. Most wealthy
people have always had extensive real estate
holdings.
- Real Estate is a
safer investment than stocks and mutual
funds. Ask you banker. Will she lend
you money to buy stocks? Why do you think the banks
advertise home loans but do not do loans for the
purchase of stock? They know that good real estate
investments are a much better risk.
- If the stock market
goes down, you can lose your entire
investment. You can end up with a
worthless piece of paper - the stock certificate.
That doesn't happen in real estate. You still have
your property.
- You can leverage
your money to large profits. If you
have $10,000 to invest, you can purchase $10,000 in
stock. You can purchase $100,000 to $180,000 in real
estate. If your stock goes up 10%, you made $1,000.
If your leveraged real estate goes up 10%, you must
made $10,000 to $18,000 100% to 180% return on your
money.
- You get big tax
benefits that stocks can never give
you. You can depreciate your real
estate investment on your taxes. An investment house
can save you $500 to $2,000 per year in taxes. Stocks
and Mutual Funds give you ZERO tax
benefits.
- You can take your
profits tax free. With stocks and
mutual funds, you take your profits by selling and
paying taxes on your capital gains. With Real Estate,
you can refinance and take cash out. There is no tax
on the money you take out through
refinancing.
- You can take your
profits without selling your
investment. If you own stock and you
need cash, you sell the stock. You do not have your
investment any more. If you own real estate, you can
refinance and take cash out. You still have your
investment making money and appreciating for
you.
- You can make money
by increasing the value of your Real
Estate. You can remodel, add a
bathroom or garage, or just decorate your real
estate, and the value goes up. You can get higher
rents, and you can sell it for more money. There is
nothing you can do to increase the value of your
Stocks and Mutual Funds.
Can I use my IRA to buy investment
properties?
Absolutely. A lot of smart investors are
switching their IRAs to Self-Directed IRAs. You can use
your IRA to purchase investment properties, but you can
use it to purchase your own house. You can get more
information here: Self-Directed
Real Estate IRA
Why did my
financial advisor say I shouldn't invest in real
estate?
Two reasons:
- Your Financal Advisor won't make any
money on the funds you upgrade to Real Estate
investments.
- Real Estate investing is not your
Financial Advisor's field of expertise. Most
Financial Advisors won't admit it, but they don't
know how to make money in Real Estate, or they would
be doing it themselves.
What is the
difference between RealEstateWinners.com and the TV real estate
"gurus"?
Most of the Real Estate "gurus" offer you a free
seminar, free class or free DVD to give you enough
information to make you want to pay $3,000 to
$5,000 for their Real Estate course. All you get
is a seminar and a box of booklets and DVDs to store in
your garage. (Your garage probably already has too much
stuff in it). You still won't know how to do your first
deal.
We will show you how to take that same $3,000 to
$5,000 (or maybe a little bit more) and we will help you
get your first investment property with it. You will
learn by doing and earning. And we won't give you a bunch
of overpriced stuff for your garage!
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