How to Invest in Real Estate in Today's market

If you have ever wondered how people really make money in real estate, then read on. There is a book that tells all from the inside out of the profession, how real people can make millions purchasing real estate for investment. This interesting to say the lease what most people don't realize is that all real estate including their home is investment real estate. The reason being is that you pay on your home for three to five years and then you sell to move on to something else. By using the profits from the sale of your home you are able to use less of your own money. This means that you are using OPM (other peoples money) each and everytime you purcahse a new home. This makes your home an investment property. The ultimate goal is to do this enough times so that when you purchase your last home you are buying it totally with funds from the profits.

Now I personally think that everyone should always have a mortgage because this will keep giving you tax benefits, but if you the kind of person that feels more comfortable having you home paid off then by all means do it. Just remember this one little peice of advice Equity that is just sitting there and is not working for you to make more income is just dead. Just like in investment properties you have to have a rate of return. So let's say you can get a 15 year fixed mortgage at 5.75% and it is interest only that means that all of the interest payments are tax deductable. Example: $100,000 at 5.75% the payment would be $575.00 per month with 100% tax deduction or $6,900 per year. Now take the $100,000 dollars that you borrowed and put it into a investment portfolio that is lets say you are making 8% over 10 years that is $8000.00 per year in interest earnings. Now lets say you take the $8000.00 every year and roll that into another investmement earning a modest 6% now remember this is where compound interest takes place you are making interest on your interest. As long as you don't take out the gain you will not have any tax liabilities. Now look at this that same $100,000 loan is still there, but let say you only borrowed 50% of your home equity that would mean you home was worth $200,000 to start and lets say that the value only went up 2% which in most areas that is low but we will be consevative this would mean you to $200,000 home whent up and is now worth $204,000 and then you have compound interest on the total value. If you see you are making money on both ends from the money you borrowed and your home. To pay off your home would not make much sense simply because it is working for you to create future wealth. As long as the balance is not go up then the value keeps going up. To learn more techniques on making money with you real estate go to http://www.timrobbinssr.com/insidersecrets.html