Successful entrepreneurs need a cost effective way of investing business profits so that they grow in value and exceed inflation. Real estate investing presents the best opportunity to both grow profits and minimize taxes.
After you fully fund your IRA or 401k retirement account you need to have another business investment to grow your wealth. Either commercial or residential real estate can be the perfect investment vehicle for the successful entrepreneur. Here are five reasons why.
1. Leverage your money. Real estate is among the easiest ways to leverage your money to make it grow faster. While it’s true that bank loans are more difficult to qualify for these days, the interest rates being charged are still historically low. Well qualified investors are not having trouble qualifying. A positive cash flow investment will more than cover the cost of the loan and you also bank the appreciating value.
2. Real estate is a tax deferral strategy. Real estate offers more tax deferrals than most or all other investment strategies. Loan interest, expenses, improvement costs, and property depreciation are all tax free or tax deferrals. You can often operate your real estate investment tax free.
3. Tax …read more