Make Real Estate Part of Your Retirement Plan

401K’s, Roth Ira’s, Stocks, bonds and annuities get plenty of attention when it comes to retirement planning but real estate may be one of the strongest vehicles you have to reach your goals. The obvious returns on real estate are appreciation, equity through debt reduction and tax credits but consider the following unique properties of real estate investment:

You can use other people’s money to invest. Unlike securities, investors can use someone else’s money to buy property. Why is that? Real estate has a more stable value than paper investments.
You use other people’s money to service debt. Yes, there is debt to pay for the money you borrowed and it is paid for by someone else- your tenant!
Profit from your total purchase, not just the amount you put down. The average increase in property value is only 5% in Tulsa so is that what you should expect as a return, right? NO! The beauty of borrowing money for real estate is that a $100,000 property purchased with 10% of your own money ($10,000) which appreciates in value to only $105,000 in one year produces a return of $5,000 on a small $10,000 investment. That’s a 50% return!

Real estate does have downsides. The beauty of downsides is that you can profit from someone else’s failure to plan for them. Expecting to always have income or failing to plan for maintenance and repairs will put an unskilled real estate investor behind the 8-ball. That seems to be the most common mistake; getting used to rent checks showing up and spending the money as it accumulates. The most powerful investors are not counting on 100% occupancy for the success of their building. Additionally, a savvy investor understands that as the economy changes, their income will decline or increase. Therefore, a bit of planning and research will make the difference between success and failure.

It is obvious why a strong investment analysis includes real estate. Visit www.tulsahousehunter.com for a look at all properties listed for sale in the Tulsa metro area and don’t overlook the power of borrowed money and how you can use it to reach your investment goals. Consult a seasoned real estate professional who fully understands your needs as an investor and begin accumulating retirement wealth today.