Learn the 5 Common Ways Real Estate Investors Make Money with our special guest speaker, Cody Touchette, from Movement Mortgage.
Real estate has the potential to generate several sources of income for investors. Cash flow, principal paydown, tax savings, appreciation, and inflation are all common strategies used to generate income.
Cash flow involves collecting rental income from tenants, while principal paydown is when part of the mortgage gets paid off each month as tenants make their payments. Tax savings result from tax deductions related to operating expenses and depreciation, and appreciation occurs when a property increases in value over time.
Finally, inflation helps increase all the other income streams, since investments (including real estate) usually outpace inflation in terms of returns experienced.
If you’re just starting out with real estate investing or are a seasoned investor, using these strategies can provide a helpful way to get your foot in the door and maximize earning potential.
Also, learn more in our blog post: Increasing Wealth & Decreasing Taxes
