How Alan Greenspan can jack up your Investing Risks
Last month the stock market scared a lot of people. In the span of just 24 hours...
Alan Greenspan said the "R" Word .... Recession
* The Chinese stock market tanked while we were sleeping
* 416 points fell right off the Dow Jones
* AND all the other major stock indexed tumbled in unison
At the end of the next day $583 Billion had gone up in smoke from Greenspan's mutterings. "R" word indeed....
Now your stock broker will still tell you the markets are safe despite these "fluctuations" and try to convince you that Real Estate Investing is much more risky. It is the same tune they sang while the markets went through the Dot-Bomb melt down.
I just smile and remember the benefits of being a "Greenspan-Proof" Real Estate Investor ...
*You Know Your Profit When You Buy*
You know what you will pay for the property. You know how you will upgrade the buildings and the tenants ... so you can calculate your profits before you actually purchase the property.
It is a numbers game where you get to look at ALL the numbers you need to be successful. Purchase prices, rents, estimates for costs of improvements. You can even calculate what you can sell for just by knowing a little about the market and the cash flow your property is producing.
*Predictable Cash Flow Lets You Rest Easy*
Your cash flow doesn't depend in the least on what anyone says about "Recession" or "Deflation" or "Inflation" or anything else that ANYONE might say about the markets in general.
You can wrap your brain around and control all the factors that bring you that monthly check. Raise the rents and lower the expenses to force appreciation in the property in addition to the steady income stream.
*Leverage Like No Other Investment*
You can buy $100 in property for $20 down and it doesn't even have to be your money.
Imagine telling your broker you would like to purchase $10,000 in stocks using $2000 in money you raised from your lawyer friend next door. They simply would not know how to respond.
Yet with $200K of your investor's money, you can buy a $1M apartment complex in any State in the Country - any day of the year.
*Save Taxes with Depreciation*
Name me any other investment that can get you a tax write off year after year - for decades mind you - while it goes UP in value. You have to love Depreciation.
The mutual fund world is so perverse you can owe taxes even though the fund lost money that year. Yeah, there's a safe investment for ya.
So when you are sifting through deal after deal, looking for the property that is going to make you good money year after year, just remember all the benefits of direct ownership of real estate.
Ignore what the Stock Market Talking Heads are Saying
Smile at your cash flow, your leverage and your depreciation and the fact that you can actually touch your property with your own to hands.
And at night, when you are ready for bed, you can forget about the market's ups and downs and sleep well knowing your assets are in real estate.
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