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Why Invest in Real Estate: 4 Benefits to Consider

If you do it right, real estate can become one of the best investments of your life. Not only does it offer passive income and ensures your long-term wealth - it can even become a full-time career if you really dedicate your time and efforts. 

With Undoor, you can invest in real estate without having to learn how to make deals, work with contractors, or manage tenants. In this article, we are going to go over some important advantages of investing in real estate for you to consider.

4 Important Benefits of Investing in Real Estate

Equity, passive income, monthly rents, tax breaks, - these are only some of the numerous benefits that make real estate investment so attractive. If you are interested in making your money make more money, consider these reasons of why invest in real estate:

1. You build equity for the future.

As your home’s value increases or you pay off your mortgage loan with time, you get to build up equity, which you can use later on. For example, you can sell the property for a sizable addition to your retirement savings, tap into equity with a home equity line of credit or cash-out refinance, or even use it to purchase another property and grow your portfolio.

2. You can receive regular passive income.

Some real estate investments, such as rental properties, can provide you with consistent, reliable passive income. If you are working a standard 9-to-5 job, this could mean additional cash to use toward family vacations. However, if you really build your portfolio, you can base your entire income exclusively on real estate investments.

And the best part is that with Undoor, you don’t have to worry about dealing with tenants or managing your properties. We work together with world-class property managers who care for our properties and residents to ensure low turnover rates and consistent rental income for you.

3. You get valuable tax advantages.

When you choose to invest in real estate, you automatically open the door to countless tax benefits and breaks, - and many of the associated costs turn into deductible business expenses. As such, you can write off the interest payments on your mortgage or even avoid paying self-employment tax on the rental income.

4. You diversify your portfolio and mitigate risk.

If you have already invested in bonds, stocks, gold, or other types of securities, investing in real estate offers an excellent opportunity to diversify your portfolio and mitigate risk. When you spread your wealth across a variety of different vehicles, you will be able to more effectively recover from losses, should they occur.

Invest in Real Estate with the Help of Undoor

Without a doubt, real estate is one of the best ways to build equity, diversify your portfolio, and earn regular passive income. 

Are you interested in investing in real estate, but aren’t sure where to start? Contact us today to learn more about our personalized one-on-one coaching sessions to help you break into the real estate investment world.