Lena Truong




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I'm Lena Truong

Real Estate Agent, Investor, Entrepreneur, Dreamer, Mama, and so much more.  I'm glad you're here. 
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How to Build Wealth with Real Estate: 8 Benefits You Need to Know

Investors, Real Estate

March 5, 2023

If you’re looking for a way to create wealth, investing in real estate can be the key.  Real estate is one of the best ways to grow your money and secure your financial future. And I’m here to help you find the perfect properties for your goals and budget.

In this blog post, I’m going to show you 8 reasons why you should invest in real estate now and how it can help you grow your portfolio.

1. Reliable and Steady Income

Imagine having a steady stream of income every month without having to work extra hours or stress about your bills. Sounds too good to be true, right? Well, it’s not. Rental properties are one of the easiest ways to create passive income because you can predict your expenses and profit margin as long as you keep your properties occupied.

2. Appreciation

One of the best things about investing in real estate is that it grows in value over time. Even when the economy is down, real estate still goes up. In fact, according to some statistics, real estate in the US increases by 3-5% every year on average. That means you can buy a property today and sell it for more money later.

3. Retirement Vehicle

Real estate investments help you retire. When you own rental properties, you can pay off your mortgage faster and enjoy more cash flow as you get closer to retirement. That means you can stop working when you want and live off your passive income.

4. Save on Taxes

Another reason why I love real estate investing is that it saves me money on taxes. Yes, you heard me right. When you sell your property, you don’t pay the same tax rate as your regular income. You pay a lower rate called capital gains tax, which depends on how long you owned the property. That means you get to keep more of your profits and reinvest them in your business. How cool is that?

5. Leverage OPM

One of the things that makes real estate investing so powerful is that you can use other people’s money (OPM) to grow your wealth. That’s right. You don’t need to pay for the whole property upfront. You can get a mortgage and pay a fraction of the cost. Then, as you build equity in the property, you can use it to get more money from the bank or refinance your loan. That way, you can buy more properties and multiply your income.

6. Control Some of the Value

Another thing I love about real estate investing is that you can make your property more valuable with some upgrades. Unlike stocks, where you have no say in how they perform, you can boost your real estate returns by making some improvements. Whether it’s updating the systems, adding new appliances, changing the finishes, or beautifying the landscaping, adding an addition, you can increase the value of your investment and attract more renters or buyers.

7. Exchange Properties

One more thing that makes real estate investing a no-brainer is that you can avoid paying taxes on your profits. Yes, you read that right. There’s a special tax code called 1031 exchange that lets you reinvest the money you make from selling one property into buying another property without paying any taxes on it. That means you can keep growing your wealth without giving Uncle Sam a cut. How amazing is that?

8. Depreciation

And last but not least, real estate investing gives you a tax break that you won’t believe. It sounds crazy, but you can actually deduct a depreciation expense on your investment property even though it’s going up in value. The depreciation deduction lets you make more money while paying less taxes.

Now you know why investing in real estate is one of the smartest moves you can make for your financial future. You can enjoy reliable and steady income, appreciation, retirement vehicle, tax benefits, leverage, control, 1031 exchange, and depreciation.

But knowing is not enough. You need to take action. I’m sure you’ve heard this before, “The best time to invest in real estate is now.”

I hope you enjoyed this blog post and learned something new today. Investing in real estate has changed my life and I know it can change yours too.

I want to invite you to reach out to me to chat about real estate investing and how it could change your life.