As a smart and savvy businesswoman, you understand how important it is to have multiple streams of income to diversify your financial portfolio.
You also know that investing in real estate is one of the most popular ways to do that. However, investing in Los Angeles real estate might feel like an overwhelming or risky prospect.
There are virtually no investments that offer zero risks, and few that offer the benefits you could enjoy when you get into the Los Angeles real estate market.
Here are a handful of advantages that you will have when you make the leap and invest in real estate.
Fantastic Cash Flow
How does a few hundred or a few thousand extra dollars in your pocket every month sound to you?
Probably pretty darn good!
One of the most touted benefits about undertaking rental properties is the outstanding, and usually positive cash flow you could experience. As an entrepreneur, you know that having additional income that is passive is invaluable because it could free you up to invest more in your business. Not to mention, that extra cash can help carry you through the tough times when business is slower.
Pop quiz: If you generate $250,000 of income from your business, and I bring in the same amount from my rental properties, who do you think will get to keep more of their money?
If you guessed me; you’re right!
The government is on your side as a Los Angeles property owner!
Unlike the money that you bring in as from your company, your rental property investments won’t be subjected to the dreaded self-employment tax. Furthermore, you’ll get to enjoy additional tax benefits like depreciation and much lower tax rates.
A Handsome Hedge Against Inflation
Inflation is a word that no consumer wants to hear. However, as a femme fatale real estate force to be reckoned with, you will have protection from inflation. In fact, as a property owner, you actually get to look forward to inflation rather than fear it!
When things like a loaf of bread or gallon of milk skyrocket in price, so do property values and rents. However, your fixed-rate mortgage payment will stay right where it is now.
Thicker and thicker stacks of cash to line your pockets with.
The beauty of rental properties is that your tenants pay down your loan while your property increases in value. Over time, most properties climb higher and higher in value over years or decades. The longer you hold onto your rental units, the more you will benefit from appreciation.
Obviously, recessions and dips in the market happen. However, that is more of a concern to people that invest in real estate short-term. In fact, rental properties actually become more profitable in those times when more people are eager to rent rather than buy.
How do you like the idea of having your fate married to some boardroom on Wall Street or a shaky CEO somewhere in Silicon Valley?
Probably not so hot huh?
As a business owner and leader, it is safe to guess that you enjoy having a fair amount of control over your life and your finances. That is exactly why you would be wise to move your money into the Los Angeles real estate market right now.
Here are a few ways that you can exercise more control with real estate than other investment avenues:
- Want a better deal? You and your Realtor can hustle to find it.
- Advertising and strategic partners like a tech-wise Los Angeles Realtor can help you compensate for a competitive market
- When property values dip, you can improve the property to increase value or wait it out
As a property owner, you call the shots and your financial future.
Want To Learn More About Investing In Los Angeles Real Estate?
Investing in rental properties is just one of the ways that you can get in the market and start padding your pockets to empower yourself and your business.
Just like with any financial decision, the one to invest in real estate markets, like the one in L.A. requires careful thought and planning.
At NextHome, we understand that real estate investing is not a one-size-fits-all solution for busy femmepreneurs like yourself. That’s why we would like to get to know you, your business, and your financial goals so we can personalize a plan that makes sense for you and help you implement it so you can focus on your company.
For more information about how to get started with real estate investing in Los Angeles, contact the NextHome team.