CREATING
LEVERAGE is the key to wealth in
real estate investing. Using a little of your own money to move a lot of someone
else's money allows you to enjoy the benefits of
deprecation for tax purposes and the real appreciation that occurs on the value
of the entire investment.
Between 1975
and 1995, all forms of real property (including houses, land, buildings and
other structures) in the U.S. appreciated by 8% per year. Single-family homes
gained about 6% a year. 1996 through 1998 inflation has been almost flat, but in
most areas, well located property continued to appreciate nicely.
We also cover the subject of
using leverage in some depth on our page about how to buy income property with
no money down. That concept is as old as the "come-on" used in
various real estate investing courses containing books and tapes, that are sold
for hundreds of dollars, to thousands of people like you on TV every week.
However, please believe us; learning how to buy property with no money down is
just one the things you will need to know and understand in order to become
successful in the rental property business. You will also learn that although
you can buy real estate with No Money Down, it usually means you pay more for
the property than you need to and don't enjoy the best
possible terms.
Learn all you can about
every aspect of the business. It doesn’t take unusual intelligence or hard
work to get rich in real estate. It just takes knowledge of some basics and then
the willingness to follow through with what you learn. If you get confused or
need additional information, join professional landlords in a local association.
Post a question on a discussion page. We won’t wish you luck, because luck has
little to do with success, but we will wish that you get started today.
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