Episode Transcript
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Speaker 1 (00:00):
The show that gives
you real estate investing
knowledge in four minutes orless.
I'm your host, tony Jacobs, andtoday we're answering the most
basic but important questionwhat is real estate investing?
Let's break it down.
Real estate investing is theprocess of buying, owning,
managing, renting or sellingreal estate for profit.
(00:21):
You're not just buying a hometo live in.
You're using property to buildwealth.
There are several types of realestate investments.
Here are four of the mostcommon.
Number one buy and hold rentals.
You purchase a property andrent it out for monthly cash
flow.
Over time, the property mayincrease in value, giving you
(00:45):
equity and appreciation.
Number two fix and flip.
You buy undervalued properties,renovate them and sell them
quickly for profit.
It's more hands-on and higherrisk, but the rewards can be big
.
Number three wholesaling.
You find great deals, blockthem under contract and assign
(01:09):
that contract to anotherinvestor for a fee Minimal risk,
no ownership, but takes hustleand strong negotiation skills.
Number four REITs Real EstateInvestment Trust.
This is a passive way to invest, like buying stock in a real
(01:29):
estate company.
It's great for those who wantexposure to real estate without
direct ownership.
So why do people get into realestate investing?
Because it's the most, one ofthe most proven ways to build
long-term wealth.
You can earn money throughnumber one, cash flow, which is
(01:51):
into rental income.
Number two, appreciation, whichgoes into property value
increases over time.
Number three, tax benefits.
Number three, tax benefitswhich goes into deductions,
depreciation and write offs.
And number four, leverage Useother people's money like
(02:18):
mortgage to control large assets.
So that's your quick crashcourse on what real estate
investing is.
In the next episode I'll breakdown different types of income
producing properties and how topick the right one for your
goals.
If you got any value from this,follow the Real Estate 101 in 4
.
I'll see you in the next fourminute session at the
Professionals Real EstateInvesting Podcast.