Rate of Return on Real Estate Investing

Many investors today have liquid cash in the bank and are seeing tremendous deals. Are you wondering if you need to buy now or stay back in the market? My suggestion is to look at the return on the money. If you are getting 1.5% return on your bank account and you have liquid cash, you can maximize your investment to a 7% to 8% return on your money.

In the past, we looked at equity appreciation as the main basis for investing in real estate. Now it has become about generating income streams and cash flow. If you have money just sitting in the bank earning 1.5% interest, it may be best to invest your money into a rental property. My suggestion is to invest in an area that initially may not seem like the greatest equity, but has renters lining up to rent properties due to a shortage of available rental units in that particular area. Right now, it’s about maximizing your rental values while creating a sizable cash flow with money you really can’t invest anywhere else and expect to see this kind of return. To find out more, ask us about our coaching programs.