Introduction

So you want to build a real estate empire? Or maybe you just want to get started by buying a rental Real estate is traditionally an importantpartofaninvestor'sportfolio.Thereasonswhyare varied, buthereareafewofmyfavorites:

Tangible - Want to know how your investment is faring? Simply drive on by. This is not a piece of paper, it is a piece of theearth.

Leverage - Real estate investors are controlling large assets witha fractionofthevalue. Itistheentireasset thatgrows,not simplythecashinvested.Thatgiveslegstothedownpayment, allowinghighercashoncashthroughappreciation.

Control - In realty, unlike the stock market, investors do not have to trust a board of strangers to determine what happens totheirmoney.Wanttosell?Improve?Gorightahead.

Limited Resource - A very simple concept here: Short of colonizing the moon or receding oceans, they're not making anymoreearth.

CashFlow- Although often overblown in real estate investing, therearemanyrealestatepropertiesthatactuallydoproduce cash flow. The trick is to buy it right, plan ahead, lower expectations, and play the long game. Your cash flow will almostalwaysincreaseoverthelongterm.

Appreciation - Zoom out to see the power of appreciation. Although there are markets, sub-markets, and micro-markets (think: neighborhoods), all property in the USA increases over time.Thenationwideaverageisaroundfourpercentperyear.

Tax advantages - A bit of a tricky one and sometimes overlooked due to the recapturing of depreciation upon sale. There is power however, in an increase of your cash flow during the typical time of lower cash availability, at the beginningoftheinvestmentlife.