Goals of Real Estate Investing

There are 3 main goals of real estate investing. Before you invest you should be very clear on what your goals are. You may decide that you want to focus on one, two, or all three of these goals, depending on your situation. For example, you may want flip some properties to raise cash so you can buy cash flow generating properties.

Equity

Having equity in real estate means having a lot of ownership. Having equity means having a lot of real value which you can put to work. This can help you in getting new loans.

Cash

Buying and selling properties can be a source of cash in your pocket. 'Flipping' properties involves buying a property for below market value and, possibly doing some improvements, and then selling it as fast as possible. Other ways of getting cash from an investment are a mortgage refinance or second mortgage.

Cash Flow

Real estate can be a source of recurring revenue. If you buy a house and rent it out for more than your monthly expenses, you will have a positive cash flow every month. This type of investing can make you truly wealthy. Having a passive cash flow means you no longer need to to work to make money. What could be better?