Grow Your Investment Portfolio with Residential Rental Properties
* The return does not include the other three financial benefits of Owning-Your-Own residential income producing properties of Appreciation, Principal Reductions (tenants are paying for your investment), and Tax Benefits. * The return for Rental Property is based on a 100% cash purchase, however, real estate allows one to leverage their investment by getting a mortgage to fund the investment. *NOTE: Your actual results may vary. All investments come with substantial risks, including the complete possible loss of all monies invested plus other losses and may not be suitable for many members of the public.
Comparing ROI for Most Common Investment Types in 2016
Above you will see the outcomes of a recent research project, designed to answer the question: Where to Invest Now? In the chart, you will see the average return on investment percentages for the six most common types of investments: Money Markets, CD's, Stock Market, REITS, and Gold for 2016. For comparison purposes, I held the ROI of the rental property as a constant and then calculated, how much one would have to invest in each of the other asset classes to achieve the same return. The property selected as the own-your-own real estate example, was an active property, available for purchase in the Pittsburgh PA marketplace, on January 17, 2017. A financial performance analysis using a REIA Report Investor was conducted to identify the ROI for the rental property along with many other financial performance factors, including the year in which the property could start producing Infinite Returns on Investment (see below). Download a FREEcopy of my recent research study: Where to Invest Now?
Infinite Returns on Investment Achieved in Year 3- nothing invested, continued returns for life
The chart below is a partial chart from a REIA Report Investor that was used to conducted a financial performance analysis on the real estate rental property used for the Where to Invest Now? research study. Please note that this example property, provides Infinite Returns on Investment in Year 3 when investor manages the property them self, and Year 4 when using a property manager. To achieve infinite returns, take the Cash Flow Before Tax (or Cash Flow After Taxes if you prefer) income generated by the property and pay yourself back for the Total Out of Pocket Expenses you paid to purchase the property. Continue to do that year after year until you are all paid back. At that point, you have nothing invested but still receiving monthly income streams- thus infinite returns. Unlike all other types of investments, you don't have to "cash in" the investment to continue receiving the investments benefits. For all other investment classes, you must dissolve the investment to reap the benefits of its equity growth (only one of the four pillars for building wealth in real estate). When you invest in the highest generating positive cash flow properties, returns move from good too great to infinite returns- yes infinite returns.
Owning-Your-Own Residential Rental Properties- Building Wealth at Four Levels at the Same Time
When investing, most investors seek out investments that are: safe, secure. provide positive returns, and are guaranteed to be there in the future. Investing in, and Owning-Your-Own residential rental properties, provides investors with an asset that can build net worth and income at four different levels- at the same time- known as a properties Four Pillars. The levels at which these four pillars come together, will be used to make investment decisions.
The Four Pillars for Building Net Worth and Income
1. Cash Flows- The amount of income generated from rents and other non-rental activities for a property 2. Tax Benefits- The total of allowable deductions on a tax return intended to reduce a taxpayer's burden (multiple tax shelter strategies you can take advantage of) 3. Appreciation- The increase in value of a property over a period of time (can come from market appreciation, forced appreciation, or financial appreciation). 4. Principle Reduction- The amount of principal that has been paid down due to making timely monthly payments on the debt (your investment is paid for my tenants).
Cash Flows and Tax Benefitsreturn cash back into your system on a monthly or yearly basis. Appreciation and Principal Reductionreturns equity over a longer period of time and typically are realized though an equity loan or line of credit, refinancing, or at sale.
MBG: THE Experts in the Pittsburgh and Western PA region
Over the last 20 years, we have become the #1 leading experts in helping investors find, analyze, buy and sell residential rental properties. As residential rental properties, can build wealth at four different levels at the same time, analyzing the financial performance of an income producing property to see HOW it is returning financial benefits to its investor is critical when making buying decisions.
To meet the full need of real estate investors, we took three years to develop and finely tune our own assessment- the REIA Report (Real Estate Investment Analysis Report). Our REIA Report comprehensively analyzes the financial performance of income producing property, reports that performance for each of the four pillars for building new worth, along with providing performance metrics that allowed the investor to make decisions across asset classes, along with performance metrics required by any type of lender when funding such investments. It is one of the many valued benefits that savvy and successful real estate investors find in working with us. When investing- we take a “business approach to the business of real estate”- because in the end, it’s all about the numbers!
Call Max at 412-552-9811 to learn more about how we help investors maximize their returns when buying own-your-own residential rental properties and how ourCommission FREEServices will save you thousands! Email himwith your contact information atMaxWilson@MaxBusinessGroup.com to set a convenient time to talk.
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