Are you searching for a low-risk and easy-to-enter approach to wealth-building? Look no further than real estate investing! This strategy focuses on utilizing properties for investment purposes, rather than as a primary residence. In fact, it's the most effective way to generate wealth, according to over 90% of the world's millionaires.
The founders of Ruthian Investment Fund have been investing in real estate for decades. Having experienced the volatility of the stock market for themselves, and seeing investors take large losses in their portfolios, our founders were determined to design an investment fund that would provide alternatives to the stock market, provide excellent investor returns, and reduce the volatility of traditional investment options.
There are several reasons why real estate investing is a great thing. It combines the benefits of investing and business ownership. You get a tangible product that you have a large measure of control over, while also being relatively hands-off. Here are eight benefits of real estate investing that have made it our favorite way to build wealth:
2. Leverage: Leverage is the use of debt to amplify returns on an investment. In real estate, it allows you to take a small amount of money and purchase a valuable property. The return is not on the initial investment, but on the property itself, which can lead to a 100% cash-on-cash return.
3. Cash Flow: Each property you invest in provides an alternate income stream. Your tenant pays your mortgage and then some, which provides you with extra cash each month.
4. Appreciation: The biggest money made in real estate comes from appreciation. If you take out a loan, the equity buy-down added with the appreciation can increase the value of your property.
5. Tax Benefits: There are several tax benefits of investing in real estate, including deductions, interest deductions, and becoming classified as a full-time real estate professional.
6. Insurance: Real estate can be insured against losses or litigation. You can set up an LLC tree to protect yourself, and you can insure properties against damage.
7. Creative Financing: Real estate can be financed in many ways, including bringing in a partner, lease options, and wholesale flips.
8. Control: Real estate investing allows you to have a lot of control over the properties you own. You can purchase properties below market value to receive instant equity and create value through rehab.
If you want to know how we're applying these benefits strategically and specifically, we encourage you to reach out to us at www.ruthianllc.com. We will be happy to give you a presentation and show you how we are pooling our resources to grow wealth collectively.