Commercial real estate owners, brokers, and landlords have collectively made many hundreds of billions of dollars a year in recent years as the economy
What is the most secure and profitable investment in the world?
For me it is real estate. I think real estate in the right countries is one of the most secure investments. It also can be extremely profitable. I have bought 20 rentals that range from single family homes to a 68k square foot commercial property. I make $12,000 a month from those after all expenses including mortgages. I have spent less than $200,000 to make close to $150,000 a year. How is that even possible?
- One of the great advantages of real estate is the ability to finance it. You can get long-term loans with low rates on most real estate.
- You can buy real estate below market value. I also flip houses and did 26 flips last year. Every house I buy I get an awesome deal on. You buy a house that is worth $150,000 for $100,000. y
- You should be making money every month on your rentals. I make that $12,000 after paying taxes, insurance, a mortgage, vacancies, maintenance, property managers, and more.
- Rentals have amazing tax advantages.
- You can refinance the properties after adding value to get most of all of your cash back out.
I got great deals on my properties. Fixed them up. Rented them. Then refinanced many of then to get my money back out so I could buy more. What is the catch? It is not easy finding the right banks, finding great deals, or the right markets to invest in.
How safe is real estate?
A lot of people remember the last crash in the US. Most people think most real estate investors lost everything, but that is not true. Some did, but many made it through just fine.
I feel I am making very safe investments with real estate.
- Even after refinancing I have at least 25 percent of the value in equity. On most properties I have much more.
- I make money every month on rent. My rent is much higher than the expenses.
- I have long term loans in place that cannot be called due in less than ten years (most 30 years).
If the housing market were to crash I don’t have to sell my properties because they will keep making money. Rents may not even go down during a crash. I also don’t see another crash coming anytime soon.
The investors that got into trouble in the last crash did so because they overleveraged, had no cash flow, and short term loans.
Part of my big commercial property.