Investing in single family real estate

When it comes to investing in Real Estate, you need to either really know what you’re doing or work with someone who does. Take it from Warren Buffet, one of the wealthiest individuals in the world, investing in single family homes is a very wise investment.

“If I had a way of buying a couple hundred thousand single family homes, I would load up on them.”

— Warren Buffett, CNBC Interview

Investing in single family real estate

There’s a ton of benefits in Real Estate Investing, to include a few:

  • Cash flow
  • Equity Growth
  • Appreciation
  • Depreciation Deductions
  • Mortgage Interest Deductions

And much more.

Some of the largest institutional investors in the nation are buying up single family homes like they are going out of style. A few who have literally invested billions recently are the Blackstone Group, Pimco Colony Capital, and Cerebus Capital Management. I don’t know about you, but there’s no need to recreate the wheel, when you see some of the wealthiest people in the world doing something, do what they do. You may need to start much smaller, but it’s only a matter of time before you can achieve some significant goals with Real Estate Investing.

Not only do single family homes typically yield higher cash flow than multi family investments, they are also much more affordable. Personally I own almost a hundred single family homes and my net return on every single one of my properties is always above 20%. I know a lot of investors that are getting around a 10% return, which isn’t bad but you need to explore other markets besides your own back yard.

Setting yourself up for early retirement is another tremendous benefit of investing in single family homes. I started by purchasing one or two rentals at a time. As I purchased then I started to refinance them, pull out the cash and just keep buying more. That strategy helped me to build a strong portfolio. I’ve worked with many investors over the years that started by simply purchasing one property a year. Many of them are now up to around 10 properties, and from a financial standpoint, they are very well setup for an extremely secure retirement. You can even borrow up to 50k from a 401k to purchase Real Estate.

In the next few blog posts we will debunk the following myths about investing in Real Estate:

  1. Investing in Real Estate is too expensive
  2. I can’t invest remotely, I don’t know how to identify a good investment
  3. I have to be a landlord

For more information on investing in single family real estate visit