I invite you to take the next few minutes to learn the truth
about the real estate market, how it compares to other methods
of building assets and why it is such a lucrative form of
investing. Many potential investors will say, 'I need to get
into the Florida Investment Property market', especially taking
into account current stock market fluctuations and the HOT
market for investment properties, but simply don't know the
facts about Orlando property investing and how to use sale and
leaseback method of property management.

When is the last time your financial advisor or stockbroker
tried to convince you that moving a portion of your assets into
the Florida Investment Property market might be a good idea?
Never Right? The 'why' is simple. They don't earn commissions
when you buy Florida Investment Property. It is also likely that
you have probably never had an 'apples to apples' comparison of
stocks versus Florida Investment Property quite like the one you
will see here.

Reason 1: Leverage: Banks will not typically loan money to buy
stocks. Banks will however, compete fiercely to loan money to
buy Florida Investment Property. Your first question should be,
'why is that'? It has to do with risk management, which we will
discuss later. The fact that banks want to loan you money to buy
Florida Investment Property creates a situation which we will
call LEVERAGE.

Let's assume that you have $10,000 to put into some type of
investment. If you choose to buy $10,000 worth of stocks, you
will own exactly $10,000 worth of stocks. Pretty
straight-forward. However, suppose you choose to invest that
$10,000 into Florida Investment Property using a 90% mortgage
(which in many cases can go up to 95-100% mortgages in today's
market), you will own $100,000 worth of Florida Investment
Property. If both of your investments were to appreciate by 10%,
your actual gain with your stocks would be $1000 where your
actual gain with Florida Investment Property would be $10,000.
That equates to an actual 10% return on investment vs. a 100%
return on investment. That's what we call leverage.

Leverage: Florida Real Estate vs. Stocks The traditional
argument against Florida Investment Property Investing (mainly
from Stock Brokers) has always been 'I can get an average of 10%
from stocks with little effort so why would I invest in Orlando
Investment Property that only appreciates 6-7% per year'? This
point-of-view is not taking leverage into account.

If you take the above statement to be true and compare the REAL
numbers, the stock investment gained 10% of the initial $10,000
value (or $1000) and the Orlando Investment Property investment
gained 6% of the initial $100,000 value (or $6000). That is
still an actual return of 10% versus 60%. It is not hard to see
which investment provides a greater immediate return on
investment. Additionally. these numbers do not take into account
any income from your property during the course of the year, or
the substantial tax advantages to owning property, which we will
discuss later.

Reason 2: Value: As we mentioned previously, if you invest
$10,000 into purchasing stocks, you own $10,000 worth of stocks
(a fairly obvious point). If you invest $10,000 into purchasing
Orlando Investment Property using the leverage of a 90%
mortgage, you own $100,000 worth of Orlando Investment Property
right? Well, only if you paid retail for your property. Any
savvy investor will tell you that there are excellent deals to
be had in Orlando Investment Property, you just have to find
them.

What if you purchased a $100,000 property that happened to be
worth $110,000 the day you bought it? Does it happen? The answer
is yes, all the time. If you have your eyes open and are willing
to 'go through the numbers' to find good deals, they are all
around you. You may be asking yourself, why would anybody sell a
$110,000 property for $100,000?

Value: Making money when you buy. The reasons are endless as to
why a quick sale is desired, but just to name a few: job
relocation, divorce, an estate is being settled or maybe a
current appraisal on the property simply wasn't done prior to
selling. By 'finding this deal' you have accomplished two things.

You have added $10,000 to your asset column in the form of
equity.

You have created additional LEVERAGE for yourself as the value
of your property increases (a 6-10% gain on $110,000 is better
than a 6-10% gain on $100,000!) Remember, you make money in
Orlando Investment Property when you buy, not when you sell.

Reason 3: Control: Let's take our assumption one step further.
When you buy your $10,000 worth of stocks, what can you do to
increase its value? If we follow the previous assumption, you
have invested $10,000 using a 90% mortgage to purchase a
$100,000 property that has an actual value of $110,000 because
you 'found a good deal'. So what can you do to further increase
the value of your new $110,000 property?

It is amazing what a cleanup, a little landscaping and a paint
job can do to increase the value of a property. Only a few
hundred dollars well spent can result in huge value gains in
Orlando Investment Property. Your $110,000 property with a
little effort could easily be worth $115,000, $120,000 or more
virtually overnight! Do you have to do any of this work
yourself? Absolutely not! If you like to do that sort of thing
then have at it, but if not, simply hire it done and accept a
little lower net gain.

Reason 4: Superior Tax Position: The tax code in the United
States is geared to reward Investors who make housing and other
property available to the population. When you invest in stocks,
you are taxed at some of the highest rates in the tax code. When
you invest in Orlando Investment Property, you put yourself in
one of the best tax positions in the business world. Remember
the wealthy that hold substantial portions of their assets in
Orlando Investment Property? Tax advantages are one of the main
reasons this is true.

Continuing with the above example, let's say that you have
completed your 'deal' with the $10,000 invested with a 90%
mortgage to purchase the $100,000 property that appraised for
$110,000 (because you 'found a good deal'), which you improved
to say, $115,000 by spending another $1000 on cleanup etc.
Assume that one year passes and the Orlando Investment Property
market grew by 6%, your property would now be worth $122,000. So
far, so good right? If you are like most people, you may want to
spend some of your hard earned money.

Let's do the numbers. You have a mortgage at current rates that
started at $90,000 and after a year worth of payments (the
majority of which are tax deductible) you still owe
approximately $89,000. However, your property is now worth
approximately $122,000. If you were to refinance at 90% once
again, you would take out a new mortgage of approximately
$110,000. This will leave you with approximately $21,000 in cash
in your pocket. Now, the BIG question; do you have to pay tax on
that money? Absolutely Not! You have not sold the property or
realized a 'capital gain'. You have simply borrowed money from
yourself. You are able to do what you wish with that money, free
from any tax whatsoever. Obviously, a good strategy might be to
purchase two more properties just like your first deal!

Also, we have not taken into account the fact that ALL of your
interest payments on this property are tax deductible. In
addition, you are also able to depreciate the property itself
and all of its contents for additional tax advantages if you
choose to do so.

Let's be fair and compare the Orlando Investment Property tax
position with the stock scenario. Assume that the $10,000
initial stock investment grew by 10% in the first year, creating
a gain of $1000 and you wish to access it. If you draw it out,
you will pay from 20-28% (or higher) in capital gains tax in
order to have access to this money. This reduces your net gain
to $800 (actual 8%) or less, depending on your tax situation.
Compare that to Orlando Investment Property and you are
beginning to get the picture.

Reason 5: Limit Your Exposure To Risk Risk Management: Do you
remember at the top when we said that banks would compete
fiercely to loan you money on Orlando Investment Property? The
answer to the 'why' is very simple. Low Risk. Banks incur little
if any risk when loaning money on Orlando Investment Property
due to the steady, solid growth rate of the property market, as
well as the fact that if you default on your payments they will
simply sell the property to somebody else. This is in direct
contrast to the volatile stock market, which can vary daily with
sharp increases and decreases in value. Furthermore, banks
realize that a property isn't going anywhere, whereas many
investors know all too well about .com and other types of
companies that were there yesterday and gone today.

This is all not to say that Orlando Investment Property markets
don't go down from time to time, however the dips are much less
dramatic than that which can take place in the stock market,
proven out by the banks' willingness to loan money on property.

Reason 6: Protecting your peace of mind. Finally, Now that we
understand the value of leverage and risk management we realize
that a 6% Orlando Investment Property gain 'beats the pants off'
a 10% stock gain in actual return on investment by a wide margin
(approximately 50%, not taking into account several factors that
can increase this number such as tax advantages, income on
property etc.) Owning good, solid Orlando Investment Property
allows you to sleep at night, or go on an extended vacation
without worrying about your asset column. This is directly
opposed to holding a substantial percentage of your assets in
stocks.