Investing in Real Estate Essay

Document Type:Research Paper

Subject Area:Sports

Document 1

Cash flow from real estate is also stable and predictable compared to most other business and can help athletes and entertainers who cannot deal with the ups and downs when the starting-up business or during turbulent times. Secondly, earning from rental properties allows owners to acquire tax benefits since the government rewards rental property owners since it is not subject to self-employment tax, and besides the government offers other advantages including depreciation and lower tax-rates. Thirdly, even if the athletes and entertainers would buy rental properties through a mortgage, the tenant will be paying for mortgage payment which increases their net worth each month. Fourthly, the value of real estate goes up and still the fixed-rate mortgage payment is not impacted even when inflation comes (Turner, 2015).

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Explain why athletes Mike Tyson, Allen Iverson, and Clinton Portis went broke and how investing in DC Real Estate would have prevented that. Explain how investing in multiunit real estate makes money. According to Lindahl (2016), one can become wealthier faster investing in real estate, especially in multi-units or apartments since most investors concentrate on single family houses. A group of tenants makes it easy to pool money to pay down the mortgage and pay for all the maintenance work for the building. Moreover, the owner gets some money of the left over every end month to reinvest, spend, or save. Multi-units also offer multiple choices of making money such as wholesale, retail, lease, and pre-foreclosure. REIClub. com. Retrieved from http://www.

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