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What Are 4 Ways Real Estate Investors Make Money?

1. Cash flow

The money left over after expenses are paid and the mortgage is paid. Anything left over money in your pocket.

2. Depreciation

A phantom tax loss that the IRS lets you take off and pay less in tax at the end of the year. Most homes are depreciated over 27.5 years but there are other ways to get more write off sooner, cost segregation analysis.

3. Appreciation

Yes I am aware of the current real estate market, I know what your thinking. (What appreciation?) Depending on your market you could have some. If you don’t it will come back over the years. You can force appreciation, if you know how.

4. Mortgage pay down

This is one of those you don’t see right away but when you refi or sell your real estate your mortgage will be less than when it first started.

The Real Book of Real Estate: Real Experts, Real Advice, Real Success Stories

To sum it up when you see each of the the four ways real estate investors make $

Cash flow-you see in your pocket every month.
Depreciation-you see at tax time.
Appreciation-you see at refi or sale.
Mortgage pay down-you see at refi and sale.

Again comments are always welcomed below, and sharing this post is encouraged. Also sign up for the Newsletter in the upper right so I can keep you up.

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2 comments

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  1. David Piotrowski

    Thank you Normand be sure to share my articles.

  2. David Piotrowski

    Thanks Mate! Its all wordpress.

  1. Free Piano

    Free Piano

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