How To Profit With Real Estate in a Difficult Economy

Many wealthy people have at least some assets allocated to real estate. Whether through single-family homes, multi-door units, or syndications, real estate is an asset class to which most with some wealth want exposure.

You’ll need to strike a reasonable balance between risk and reward to consistently profit from real estate, regardless of the economy.

Finance With a Fixed-Rate Mortgage

A fully amortized fixed-rate mortgage is the best way to mitigate cash flow problems.

Research Your Properties Extensively

Always be picky about the properties you invest in and don’t accept marginal return deals. Consulting an investment real estate agent can set you and your future property up for success.

Concentrate on Consistent Cash Flow

Your first few properties should be rented out to tenants because you’re guaranteed some sort of consistent cash flow.

Prioritize Lowering Your Leverage Risks

Decreasing your leverage increases your margin of safety and cash flow, so aim for a leverage position of 50-70%.

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