Investing in real estate is a marathon, not a sprint.

Investing in real estate is a marathon, not a sprint.

Investing in real estate is a marathon, not a sprint. Your next 7 years could look like this👇 // Year 1: While the first year may not be that exciting, it’s definitely an accomplishment to invest your first $50,000. You should then start earning a 4% - 6% annual cash return. // Year 2: In the early Spring, you receive your first Schedule K-1, which is the tax document that shows your income and losses from your first investment. The same year you invest another $50k. // Year 3: Now you get 2 Schedule K-1s showing paper losses you can claim. The same year you make another $50K investment. Congrats! // Year 4: You're now collecting quarterly distributions on 3 deals! Sometimes, the cash flow from properties can be less in the beginning, but as more value is created, distributions can increase more and more. The property in Year 1 is now performing really well! // Year 5: The property from Year 1 investment has finished renovations and is sold. You receive your original investment of $50K back plus another $40K from sale profits. You're in a good spot financially, so you reinvest that $90k into another deal. Plus you wanted to make a new investment anyway, so you invest another $50K into a syndication. // Year 6: You’re now collecting cash flow on 4 deals! The market is in a great spot. The property from Year 2 sells. You reinvest the profits again and invest an additional $100K into another syndication. // Year 7: You’re currently invested in 4 deals! Now the property from Year 3 is done with the business plan and sells. See how powerful this strategy can be? - - You see that most syndications last between 5 and 7 years. You haven’t had to do any of the heavy lifting and you’re able to claim tax write offs along the way. 👉 It's similar to building your own real estate conveyor belt!

 

I found this article on LinkedIn this morning, October 17, 2023, and I sort of laughed when I read it.  I cannot say that I agree with anything specifically, but I applaud the concept that the author is trying to get across.

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