Savings Account or Real Estate Investment?
A friend of mine showed me a statement of his savings account totaling $20,000. So far this year, it has paid him a total of $4.40 of interest. Yes, that is only four dollars and forty cents of interest generated from his saving's account! It is time to get your money working for you, and why not invest in real estate? Think about it. For the same money, you could earn as much as 9% to 25% or more depending on the property and the income it would generate. Why not use the $20,000 to put down on a $100,000 investment and get financing for the balance of the $80,000? This type of investment might pay you about $12,000 annually and net you $5,000 in your pocket each year. This is after you have paid your mortgage, taxes and maintenance expenses. This real estate investment could net a $5,000 (25%) return for your $20,000 investment depending on factors such as maintenance expenses and tenant occupancy. It is smart not only to use your money to make money but also use the lender’s money to make a great return. There is always risk, but in my opinion, it is very low in this market.
All of our agents at Gerspacher Real Estate Group not only sell and lease real estate, they are personally invested and will guide you through the investment process from start to finish. Call one of us today!