The Professionalist Real Estate Investing Podcast

Real Estate 101 in 4: Defining Real Estate Investing (Ep. 1)

The Professionalist Real Estate Investing Podcast

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Speaker 1:

The show that gives you real estate investing knowledge in four minutes or less. I'm your host, tony Jacobs, and today we're answering the most basic but important question what is real estate investing? Let's break it down. Real estate investing is the process of buying, owning, managing, renting or selling real estate for profit. You're not just buying a home to live in. You're using property to build wealth. There are several types of real estate investments. Here are four of the most common. Number one buy and hold rentals. You purchase a property and rent it out for monthly cash flow. Over time, the property may increase in value, giving you equity and appreciation. Number two fix and flip. You buy undervalued properties, renovate them and sell them quickly for profit. It's more hands-on and higher risk, but the rewards can be big. Number three wholesaling. You find great deals, block them under contract and assign that contract to another investor for a fee Minimal risk, no ownership, but takes hustle and strong negotiation skills. Number four REITs Real Estate Investment Trust. This is a passive way to invest, like buying stock in a real estate company. It's great for those who want exposure to real estate without direct ownership.

Speaker 1:

So why do people get into real estate investing? Because it's the most, one of the most proven ways to build long-term wealth. You can earn money through number one, cash flow, which is into rental income. Number two, appreciation, which goes into property value increases over time. Number three, tax benefits. Number three, tax benefits which goes into deductions, depreciation and write offs. And number four, leverage Use other people's money like mortgage to control large assets. So that's your quick crash course on what real estate investing is. In the next episode I'll break down different types of income producing properties and how to pick the right one for your goals. If you got any value from this, follow the Real Estate 101 in 4. I'll see you in the next four minute session at the Professionals Real Estate Investing Podcast.