All serious investors should add real estate investing to their investment portfolio. Enjoy passive investment cash-flow, and create a hedge against inflation.
While most of us know this intuitively, the thought of managing toilets and tenants prevents them from acting. Their instincts are not wrong.
Unless you have the time, expertise, and passion for operations, you really should NOT manage your property.
There are numerous compelling reasons to invest in real estate, but there are only a few reasons to become a property manager.
Ask yourself if you are investing in real estate to gain financial freedom or are you investing to become a landlord?
How To Avoid Being a Landlord
Commercial Real Estate affords you access to the top management firms in the country. Firms that drive down costs, raise rents, and increase retention through expertise and economies of scale that most individuals cannot replicate.
Asset managers and property managers with proven track records that align their interest with their investors, make their clients far more money than they cost.
Specialized knowledge in market analysis and acquisitions allow asset managers to force appreciation of the investors property. In doing so, loan to value rates can drop relatively quickly.
After a few short years, using the right system with the right property, it is possible to gain significant equity such that a refinance can be considered.
The Tax Benefits
This form of equity harvesting is historically tax free and allows you to obtain a significant amount of your original capital contribution back to reinvest in another performing asset while maintaining your interest in the first performing asset.
Wealth accelerating systems like these passive investments can have a multiplying effect on your portfolio, while legally avoiding the decelerating effect of taxes.
Making Commercial Real Estate Obtainable
For many years, this type of commercial real estate investing was unavailable to most of us. We were stuck with paper assets like stocks, bonds, and mutual funds. Some bought single family homes, duplex, triplexes and quads, and suffered through the management headaches.
On Nest Egg Rx, we help you understand Commercial Real Estate Investing opportunities for busy physicians who want to take advantage of all of the benefits of real estate without any of the headaches of becoming a landlord.
We also provide education for those interested in real estate. Visit our active investor’s forum for those who own real estate investments and need solutions to specific real estate problems.
Nest Egg Rx is about you and dedicated to helping you achieve financial freedom through real estate investing.
It’s your Wealth and your Retirement, Why not Make it Abundant.
To your Financial Freedom,
Dennis Bethel, M.D.