Mike Carruthers:
Ever notice that if you read financial magazines or talk to a
financial planner, they don't often recommend real estate as an
investment.
Dolf
de Roos:
Financial planners do not like real estate for a very obvious
and transparent reason.
Real
estate investor, Dolf de Roos, author of the book, 101
Ways To Massively Increase The Value Of Your Real Estate…
You see
when they tip clients into stocks or bonds or certificates of
deposit they get a commission. They get an entry commission
and exit commission a trailing commission and a switching commission.
They love that sort of investment because they get rich.
Although
real estate takes more work and effort Dolf believes in many
ways it's much better than the stock market.
For a
number of reasons that you can back up scientifically. For instance
if you look at the stock market listing from twenty years ago
there are many firms that existed then that are no longer around.
I mean I can rattle some off; Montgomery Ward, Enron, WorldCom.
And when they disappear the companies go bankrupt and the stockholders,
the investors lose all their money.
But real
estate typically doesn't go anywhere and it's further evidence
of its investment potential, Dolf says look at the way banks
look at real estate.
If you
ask for a business loan you'll currently pay 14-18% interest.
And if you ask for an unsecured credit card loan you pay 21
or 22%. The lowest interest rates that bank has is the interest
rates charged on real estate.
You can
link to Dolf's website from ours: somethingyoushouldknow.net.
I'm Mike Carruthers and that's Something You Should Know.
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