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There is an old adage, that the three most important words in real estate are 'Location, Location, Location'.
The benefits of investing in real estate include passive income, stable cash flow, tax advantages, diversification, and leverage. Real estate investment trusts (REITs) offer a way to invest in real estate without having to own, operate, or finance properties.
As such, it offers opportunities for large and small investors to purchase property with borrowed money and with minimum risk to their own capital. The major purposes of investing in real estate are to: (1) preserve capital, (2) earn a profit and (3) obtain tax shelter.
By understanding the three key real estate goals ? buy, sell, and invest ? investors can create a strategy that helps them achieve their desired financial outcomes. With a little bit of research and some patience, these goals can lead to success and maximize profits.
Why Consider Investing? Make Money on Your Money. You might not have a hundred million dollars to invest, but that doesn't mean your money can't share in the same opportunities available to others. ... Achieve Self-Determination and Independence. ... Leave a Legacy to Your Heirs. ... Support Causes Important to You.