Our research and experience show that no other investment has had as consistent and powerful an effect on the average person’s net worth as real estate ownership.

“Where else are you going to make a small down payment, let somebody else pay for it, and you reap all the rewards? I can’t find anything that beats that.”

Will Stewart
Millionaire Real Estate Investor
Sugar Hill, GA

A major bonus of real estate is the Cash Flow it can generate: Real estate is rentable. You can purchase a property and then turn around and rent it to a person who will pay down your debt in exchange for living there. In reality, that’s what renters do- they pay your mortgage, which builds your equity. When you take a look at the total return from real estate investing, you have the opportunity for an investment “triple-play”—appreciation, debt paydown, and positive cash flow

One of the unique and attractive advantages of real estate is that it is improvable. Real estate is a tangible asset made of wood, brick, concrete, and glass, a Millionaire Real Estate Investor knows you can improve the value of any property with some tools and a little elbow grease. This is called “sweat equity.”

The 3 real estate tax benefits that the government has given that standout most are that it’s deductible, depreciable, and deferrable. Millionaire Real Estate Investors are well aware of these tax advantages and take advantage of them. You could say that they see real estate in 3D.

The first D, Deductible, reflects the fact that tax law allows various deductions for the normal expenses incurred in owning real estate, such as property upkeep, maintenance, improvements, and even the interest paid on a mortgage.

The second D, Depreciable. What’s interesting is that not only does tax law allow you to depreciate your investments, it requires it. The government expects you to account for that “wear and tear,” whether it’s actually happening or not, by claiming an annual decline in the value of the building, its contents, and any improvements.

“I think real estate is the platform that gives you the most control.”

Robert Kiyosaki
Best-Selling author and millionaire investor
Scottsdale, AZ

The third D, Deferrable. Tax law allows you to use IRAs and 1031 exchanges to buy and sell investment real estate while deferring the tax hit to a more advantageous time.

In the end the three Ds—deductible, depreciable, and deferrable—are about reducing your taxable income. No investment does that better than real estate, which offers unprecedented tax advantages both while you own it and when you sell it.