When you see any title here containing the words “Madison Real Estate Investment,” you won’t be terribly surprised if the gist turns out to be what a good idea! When you’ve had the experience of seeing clients succeed with many real estate investment projects, it’s an unavoidable conclusion. Unfortunately, also pretty yawn-worthy.
That’s why I was pleased to come across Grant Cardone’s piece in Entrepreneur magazine. We all like to see our opinions agreed with—but doubly so when you’re offered specifics that bolster your own conclusions. The article listed reasons why real estate investments are “your smartest investment.” Here are some of them:
- A real estate investment is a hedge on inflation. Inflation hasn’t been hugely important for a while, but serious investors have an eye out for the possibility. When you dig down, you find that real estate investments have “historically shown the highest correlation to inflation” of other major asset classes.
- Real estate investments enable positive cash flow. This was Entrepreneur’s number one reason. Having an investment which throws off cash while building equity at the same time is any smart investor’s ideal situation. When a Madison real estate investment produces an income stream that is significantly higher than the typical stock dividend, what investor wouldn’t be interested?
- Leverage. A typical Madison real estate investment makes it relatively easy “to place debt on the asset” because of its built-in collateral value. Entrepreneur offered some math to back up the way low-cost debt works to multiply a real estate investor’s power.
- Maximizing tax benefits. Taxes can be the bane of any investor—so real estate provisions that lighten the load can be significant factors influencing your bottom line.
Those are four solid advantages of the eight detailed in Cardone’s article. The last reason was less demonstrable but, IMHO, just as real:
- “Feeling the pride ownership” (no further explanation necessary).
If you are an investor who is beginning to look over the year’s performance and thinking about how you want 2017 to look, I hope you’ll do two things. First: take a serious look at whether a Madison real estate investment might make a smart addition to your current portfolio. Second: call me!
Jen Stauter Kornstedt
HomeTeam4U-Stark Company Realtors
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