Real Estate Investing is Still the Best Investment ... And Way Better Than The Stock Market If Real Estate Investing is still the best investment, then why are people still investing in the stock market or other investments. I think there are a number of reasons: 1) real estate investing is too much work; 2) people don`t want to take responsibility for their investments; 3) real estate investing is boring. First of all, why is Real Estate Investing still the best investment? 1. Appreciation Suppose you purchase an investment property for $200,000. Let’s say you put $40,000 as a down payment and finance the rest. Over the next year your property grows in value at a rate of 5% (in some areas it's more and in some areas it's less). This means your property is now worth $210,000. Your Return on Investment (ROI) for your $40,000 is $10,000 or 25% … in just 1 year. But that's boring isn't it? What if you paid less and your appreciation was more? 2. Monthly Income But remember, this is an income property that you are renting out to make money. So assume your monthly expenses, which includes your mortgage, insurance, taxes, maintenance, management, vacancies, etc. are approximately $1,300. And let's assume you can rent this property for $1,500. That's a cash flow of $200 a month or $2,400 a year. And the good news is that when times are tough in a bad economy, more people are renting so your rental income is even more secure. 3. Principal Pay Down You are also paying off your mortgage during that time. At today’s interest rates, you might earn another $4,000 of equity because of your principal pay down. Total profit on this one $40,000 investment is: $10,000 Appreciation $ 2,400 Monthly Cash Flow $ 4,000 Principal Pay Down $16,400 Total That’s a return of 41% and that's only in the first year.

1. Real Estate Investing
is still the
Best Investment

2. Why are people still investing in other
investments and not Real Estate?
● real estate investing is too much work
● people don’t want to take responsibility
for their investments
● real estate investing is boring.
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3. So Why is
Real Estate Investing
still the
Best Investment?
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4. 1. Appreciation
Suppose you purchase an investment property for
$200,000. Let’s say you put $40,000 as a down payment
and finance the rest. Over the next year your property
grows in value at a rate of 5% (in some areas it's more and
in some areas it's less). This means your property is now
worth $210,000. Your Return on Investment (ROI) for your
$40,000 is $10,000 or 25% … in just 1 year.
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5. 2. Monthly Income
Assume your monthly expenses, which
includes your mortgage, insurance, taxes,
maintenance, management, vacancies, etc. are
approximately $1,300. Assume you can rent
this property for $1,500. That's a cash flow of
$200 a month or $2,400 a year.
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6. 3. Principal Pay Down
You are also paying off your mortgage during
that time. At today’s interest rates, you might
earn another $4,000 of equity because of your
principal pay down.
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7. Total Profit on the $40,000 Investment
$10,000 Appreciation
$ 2,400 Monthly Cash Flow
$ 4,000 Principal Pay Down
$16,400 Total
That’s a return of 41% in the first year.
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8. Take Control of your Investments
There are a lot of people getting rich in
Real Estate Investing because they
know how to deal with real estate. You
don't have to do everything yourself.
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9. When was the last time you made
good consistent returns on your stock
market investments? Or what kind of
returns are you getting on your mutual
funds? What kind of control do you
have with these investments?
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10. With your stock investments you have
absolutely no control, other than get in
and get out. You can't influence how
well your investment performs. You
can't influence changes in the
company you are investing in or the
demand for their product or service.
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11. In Real Estate Investing there are lots
of ways to improve the value of your
investment so that it appreciates more
and so that it rents faster and for a
higher rent. You are in control.
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12. Don`t have the time? You need to
make time or keep getting the returns
you have been getting ... maybe!. Real
Estate Investing may not be exciting.
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13. Real Estate Investing is a slow proven
method to financial success.
Boring!
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14. More Information
If you would like to read the full article
and learn more about
Real Estate Investing …
go to
jimpellerin.com
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