Real Estate Investing 101: How to Make Money and Build Wealth
00:00:00.000 | So there's a lot of practical reasons why you want to invest in real estate.
00:00:03.140 | Even the casual observer sees home prices getting higher and higher and higher.
00:00:07.280 | It's kind of understood that it works, but not everyone knows the brass tacks of why
00:00:11.460 | you can make money with real estate.
00:00:13.020 | A lot of it are tax advantages.
00:00:14.700 | It's very forgiving for real estate investors and the money that you make from real estate,
00:00:18.400 | you usually pay much less taxes on than if you made that same money at a job because
00:00:22.780 | there's a little bit of risk that's going to be involved in it.
00:00:25.200 | It's easy to leverage, meaning I can buy a $500,000 house and put maybe 5% down on the
00:00:31.400 | loan.
00:00:32.400 | So I've only put $25,000 of my money, but when that $500,000 house appreciates by 10%,
00:00:38.220 | goes up to 550, my $25,000 just made me $50,000 of equity.
00:00:43.840 | So it's like I've doubled my money relatively quickly where it's harder to invest in other
00:00:48.780 | assets where you can borrow money quite as easily.