The Informed Investor's Resource

 

Frequently Asked Questionsreal estate investment 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.

  1. 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. 
  2. 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. 
  3. 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. 
  4. 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. 
  5. 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. 
  6. 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. 
  7. 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:

  1. Your Financal Advisor won't make any money on the funds you upgrade to Real Estate investments. 
  2. 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!

 

 

The  
$1,000,000
Strategy

  1. Buy your own house. 
  2. Purchase an investment house.
  3. Buy several more investment properties as you are able.
  4. After about 10 years sell your houses and purchase an apartment complex.

Where to Find the Money to Invest

  1. Your savings account.
  2. Your home equity.
  3. Cut back on unnecessary expenditures and save the money.  Use the Calculators.
  4. Start a part-time home business.
  5. Upgrade your IRA to purchase Real Estate.