Making Money Investing in Real Estate

By
Real Estate Broker/Owner with Kolsky Realty & Management 01311273
http://actvra.in/4c8P

 

Making Money Investing in Real Estate

 

real estate investmentJust as in any investment, including real estate investments, we invest money in hopes of earning greater wealth from the investment. I reference real estate investments because there's 4 excellent reason why the ownership of income property makes a solid investment.

 

Positive Cash Flow~ Positive cash is the bottom line in dollars and cents. All the money going out verses all the money coming in. "If" the investment takes in more money than the expenses going out then the investment is a cash positive investment. Cash is king when it comes to investments, investing in real estate with a positive cash flow ensure your investment adds to your overall wealth.

 

Appreciation~ Overtime you will owe less, and the investment value will rise. It’s not a get rich quick mentality, and "if" you hold on to it long enough your investment will appreciate.

 

Principal Loan Reduction~ With each and every passing year, something in a monetarily way advantageously occurs to your real estate investment. Most all loans these days are amortizing mortgage, which means significant principle reduction, i.e., the less you owe the lender. With an amortized mortgage the longer you own the property the less money you owe on it, and year after year that really adds to your overall wealth. 

 

real estate investmentIncome Tax Credits~ Of course, always consult with your local tax pro before banking on any tax credits. Although, “potentially” owning income property may encounter beneficial income tax credits. 

 

 

If your investment does NOT bring in a positive cash return, things can ugly real quick, and there’s a good chance you’ll likely lose your investment to the bank. On the other hand; “positive cash flow” is one of the most vital aspects when it comes to investment property and long term financial prosperity. A positive cash flowing investment pays the bills, it accumulates & earns you interest in your bank account, and it puts money in your hands.

 

 

  **Comments? Questions? Want additional information? Post your comment directly to me online, or please call me anytime!  

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Will Nesbitt 02/20/2014 03:26 AM
  2. Bob Crane 02/22/2014 01:01 AM
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making money investing in real estate

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Rainer
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Scott Larson
BHHS/Utah Properties - Park City, UT
Park City, Utah Real Estate News

Jon, you are the real expert on investment real estate and I know you have done really well yourself so I hope people are listening.

Feb 20, 2014 02:12 AM #1
Rainmaker
1,166,809
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Scott~ thanks for the nod, it's much appreciated! I got into the business a long time ago and looking back at it "it" was the best financial decision I ever made! Thanks for the comment!

Feb 20, 2014 03:00 AM #2
Ambassador
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Jon, It can be very lucrative. We starting investing about 30 years ago and it is now going to be our fund. I am so glad we did.

Feb 20, 2014 03:20 AM #3
Rainmaker
1,166,809
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Debbie~ I agree with you 100%.... "With the proper investigation and homework, investing in RE adds to overall wealth or at least it has for me, too!...I started investing in 1990 and because of "it" it gives me great financial freedoms... 

Feb 20, 2014 04:04 AM #4
Ambassador
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Bob Crane
Woodland Management Service - Stevens Point, WI
Forestland Experts! 715-204-9671

Nice summary of the investment game Jon, buy them right, watch your expenses, and have a good exit plan.

Feb 20, 2014 06:17 AM #5
Rainmaker
1,166,809
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Bob~ thanks! "You don't need to be a rocket scientist to invest in real estate and make money, you just need to be smart when you invest in real estate to add to your wealth... Thanks for the comment! 

Feb 20, 2014 07:06 AM #6
Rainmaker
1,143,096
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Even with the painful memories from just several years ago fresh in many peoples minds I still am a huge believer in real estate for all the reasons you mentioned and more!

Another great post

Feb 20, 2014 10:22 AM #7
Rainmaker
3,680,674
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Jon, excellent advice for those with an interest in real estate investing.

Feb 20, 2014 09:17 PM #8
Rainmaker
1,166,809
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

David~ I just know that it works and pays off! & yes some investors took big risk and played leverage like it was a fool...All I know "it" has worked for me and I love it... Thanks for the comment!

Gabe~ I gave it my best "thanks

Feb 21, 2014 01:12 AM #9
Rainer
1,650
Jonas smith

That particular blog post is written artistically and it includes many practical knowledge for everybody. I guess you've carried out a great job of handling this delicate 

Jun 08, 2014 03:11 PM #10
Rainmaker
1,166,809
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Jonas~ thanks for the compliment/comment, I am glad you like it and told me so

Jun 09, 2014 01:21 AM #11
Rainer
1,650
Jonas smith

Appreciation of real estate? Not necessarily. After all, there was the Great Depression II and most home values have not recovered fully.

CEA Approved RES Course Provider

Jun 12, 2014 08:52 PM #12
Rainmaker
1,166,809
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Jonas~ we all have our own perspective, thanks for sharing yours

Jun 13, 2014 01:58 AM #13
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