October 19, 2019

Why real estate is IDEAL

 Why real estate is IDEAL

Many people ask us WHY we find real estate such a superior investment vehicle over all the other investment asset classes. To make it short and memorable we like to use the I.D.E.A.L. acronym:

>> I stands for Income the property produces that can be distributed to the investors in the form of quarterly cash distributions.

>> D stands for Depreciation the property produces that can be used to offset the income being produced.

>> E stands for Equity build up the property produces through the pay down of the mortgage.

>> A stands for Appreciation the property produces through an increase in value.

>> L stands for Leverage available through the use of financing. Real Estate is one of the few investment vehicles that allows you to buy assets of greater value than your on-hand cash.

The above is true to ALL real estate asset types. From the single family house purchased as a rental to the massive commercial assets such as apartment communities and high-rise office buildings.