3 Reasons Real Estate is a Better Investment than Stocks

In the current economic climate, most people are struggling with where to put their money that will give them a decent rate of return and prepare themselves for retirement. Most IRA's and 401K's took a beating in the crash of 2008 and have yet to return fully to their levels of 4 years ago. Compounding this problem and making retirement a bleak prospect for many, the Dow Jones is no higher than it was 12 years ago. This means that if your 401K or IRA has matched the performance of the Dow, your retirement account is worth no more than it was over a decade ago. There's no question that real estate was severely impacted by the recession of 2008 also, but I'm going to share 3 reasons why I think real estate is a better investment in the long haul.

1. Better Return on Investment

The chart to the left shows how stocks have performed compared to real estate since 2000. With a 43% return rate, real estate has clearly outperformed all 3 major stock indexes

2. Cash flow

Real estate returns are made up of both equity appreciation and cash flow from rental income. Unlike stocks, real estate still produces returns through rental income even if there is a devaluation of the asset.

3. Leverage. By financing real estate, an investor can achieve high rates of return on a small amount of their own money. For example, a $50,000 investment in stock with a 5% annual rate of return will generate a gain of $13,814 over 5 years. An investment property acquired for $50,000 that appreciates 5% will generate the same $13,814 gain, however since the real estate was acquired with financing and a $10,000 down payment, the cash on cash return over 5 years is a whopping $138% and that doesn't even include the rental income generated during that time.

Most financial managers and fund managers recommend stocks because it's what they know and what they get paid on. If you're not satisfied with the performance of your retirement fund and want to explore the world of real estate, check out our website to see how you can get started,

How to Invest in Cash-flow Properties

Let Someone Else Fund Your Retirement Account

That's exactly what you're doing if you hold cash-flowing real estate in a self directed IRA. All the rental income goes straight in to your IRA so your renters are funding your retirement account--Not YOU!

 

Many people don't know they can invest in real estate through their IRA, but it is nothing new. The IRS has allowed it since IRA's were created in 1975. Wall Street just doesn't want you to know it since they would rather sell you equities.

 

The Dow Jones is no higher today than it was 12 years ago which means that if your retirement account has kept pace with the Dow, you're no further along today than you were a decade ago! At that rate, will you be able to retire when you want or will you be like the 54% who have to rely on social security and family to make ends meet?

 

 3 Advantages of Owning Real Estate in your IRA:

 

1) Outperforms the Stock Market

 Rental property will easily produce a 12-14% ROI. The Dow Jones has grown only 1.8% per year for 10 years.

 

2) Tax Benefit

All income and appreciation on real estate held in your IRA is tax deferred. Just like any other traditional investments in your IRA, the profits from your real estate holdings will be tax deferred.

 

3) Inflation Hedge

The problem with most traditional investments such as savings, CD's, stocks and mutual funds is that they are not even keeping pace with inflation. The 2012 inflation rate is running at 2.2%. As seen above, the Dow is returning only 1.8% and the S&P is only averaging a measly .43% over the last 10 years while inflation has averaged 2.4% in the last 10 years. Clearly, if your retirement account is not significantly outperforming the financial markets, your futture retirement is being eaten up by inflation. With 12-14% returns on real estate, you will far outperform inflation.

 

It doesn't take a lot to invest in real estate.

If you have just $15,000 in your IRA, you can own income producing real estate that will give you a 14%-16% return.

 

See how you can accelerate the growth of your retirement account.

Download "8 Best Kept Secrets About Investing With Your IRA" from our friends at UDirect IRA Services and learn how you can take control of your IRA today.
 

Click here for your FREE REPORT

To see available propeerties, click here SEE PROPERTIES

Beautiful 8 Unit Indianapolis Apartment

Located across the street from the historic Garfield Park

This beautiful, brick apartment has been meticulously renovated, preserving it's historic art deco style. Large 1 bedroom/1bath each unit. All 8 bathrooms have been upgraded with ceramic tile. new tubs/showers/vanity and toilets. All windows have brand new storm windows. Each unit rents for $500. Total cash flow after all expenses is about $2100 per month. Currently under professional property management.

2525 Shelby St, Indianapolis
Asking Price              $220,000
Total rent                   $4000/mth
Operating expenses   $1492
Cash flow                  $2108              
Cash-on Cash            11.5%                                

For a pro form P&L, Click Here 

E mail me for more information at m.darrigo@sbcglobal.net







                                                                                                 

Prices Slashed on 10 Turn-key Properties!

This is a chance to pick up a great cash-flowing rental property at a great price. We've slashed the price on 10 properties and priced them to sell quickly. All are located in good Indianapolis neighborhoods and are fully renovated and most are priced under $45,000.
 
 Here's just one of these great deals.

Over $500 per month Cash-flow and nearly 15% ROI!

3536 Payton Avenue, Indianapolis
4Br 1Ba
Rented for $799
Cash-flow  $552
ROI  14.8% 

Financing available

To See More Deals, CLICK HERE

Indianapolis rent is on the rise

Source: Trulia

According to data released by Trulia last month, housing prices increased only slightly nationwide in the last 3 months, however, rents have increased an average of 5.6%. 6 of the top 10 markets had increases of over 10%. Indianapolis ranked 5th in the nation with an increase of 11.1%. Trulia attributes the rising rents in these markets to increased employment and rising housing prices.

With rents on the rise, now is a great time to buy rental property in Indianapolis.

Click Here to check out some of the turn-key, cash-flowing properties we have to offer in Indianapolis.. E mail me at m.darrigo@sbcglobal.net.

This turn-key duplex is a real cash-cow

                       20% ROI!

Check out the cash-flow on this fully rehabbed duplex. Fully rented and cash-flowing over $800/mth! Needs nothing--you'll be cashing those rent checks the first month. Our duplexes don't last long so if you like what you see, don't wait or it will be gone.Check out the kitchen on this one.

For more details and pictures, Click Here

1630-1632 Tabor St, Indianapolis
       Asking price   $47,000

                                                                                                   

Indianapolis Rated the Best Market for Real Estate Investment

Inman News examined the demographic and economic data for hundreds of metropolitan areas in the U.S. to determine the best markets for real estate investment. After narrowing it down to the top 10, guess which one came out on top? Read the article to find out.

http://www.inman.com/reports/10-markets-invest/index.html

To see available turn-properties in the best U.S. real estate investment market
Click Here