What’s Your Why in Real Estate?

Learn the 6 top reasons real estate builds wealth. Pick your top 3 to stay focused.

It doesn’t take a brain surgeon or nuclear scientist to know that real estate has made more millionaires than any other endeavor. In fact, among the real estate millionaires in the world, there are probably a few surgeons and scientists in the mix. If that’s true – and I’m betting it is – real estate wealth is better than brain surgeon wealth.

If you’re part of the “wealth is wealth” crowd, let me refocus you. Making $1 million digging ditches is nowhere near as fun as making $1 million in real estate – if done the right way. And what’s that right way? Well, it ain’t landlording I’l tell you that.

But before we get into why landlording isn’t a walk in the park, let’s talk about the primary advantages of real estate investing. After that, I’m going to ask you to rate your top three advantages or “whys.”

1. Leverage: Real estate allows you to leverage other people’s resources (aka money) to build your own wealth. You can put a small amount down and finance the rest, controlling a larger asset for a smaller investment.

2. Passive income: A stream of passive income can provide you with financial security and, if that isn’t enough, it’s exempt from self-employment tax.

3. Tax benefits: What can you deduct from your taxes based on your real estate investing activities? Take a look at this laundry list: mortgage interest, property insurance, management fees, maintenance and repairs, property taxes and other qualified business expenses.

4. Depreciation: Depreciation, the gradual loss of a property’s value over time due to wear and tear, reduces tax liability and taxable income. However, income from rental properties isn’t classified as earned income. (See passive income above.)

5. Appreciation: Given enough time, real estate tends to appreciate in value. Or, if you are a member of my Wealth Mastermind Network™ (WMN) and know the Potentializer principles, you may not need all that much time! Appreciation can be helped along by buying in the “right” areas or making improvements to increase the property’s value. Plus, you’ll also build equity that will increase in value over time.

6. Cash flow: When you subtract your outgo from your income, cash flow is the remainder you have in hand each month. That’s after paying your expenses, including your mortgage, property taxes, insurance and more. That positive cash flow can be used to reinvest in other properties or other areas.

So, what’s your why?

From leverage to cash flow, the advantages of real estate investing are hard to ignore. Take a moment to reflect on which three benefits matter most to you—and let that guide your next move. Whether you’re just getting started or looking to grow, having a clear “why” keeps you focused, motivated, and on the right path to building real wealth. More insights coming soon—stay tuned!