Monday, August 6, 2007

How Does Investing in Real Estate Create Wealth?

Many people may have heard that investing in real estate builds wealth, but are unsure as to how this takes place. Can it really be different from other investments? When investing in real estate, you may choose to buy and rent a property, or you may choose it "flip it" (buy and sell quickly). The safest way to invest is to buy wholesale properties that are priced right and that are located in safe and stable markets. The goal is to find an investment property with a solid positive cash flow that may appreciate in value over time. It is that combination of cash flow and appreciation that helps create wealth.

Positive cash flow is the amount of money that is left over after all of the expenses have been paid on the property at the end of the month. It is the View the rest of this article


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