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We use real estate to build wealth, passive income, and financial freedom.
We use real estate to build wealth, passive income, and financial freedom.
Every dollar put into a piece of real estate makes money in 6 ways:
Every dollar put into a piece of real estate makes money in 6 ways:
Cash Flow
Cash Flow
“Cash isn’t king. Cash FLOW is king.”
“Cash isn’t king. Cash FLOW is king.”
Cash flow is spendable money in your pocket every month or every quarter. It’s a property’s income minus expenses, reserves and debt service.
Cash flow is spendable money in your pocket every month or every quarter. It’s a property’s income minus expenses, reserves and debt service.
Cash flow is the key building wealth and passive income; without it one will never achieve true financial freedom.
Cash flow is the key building wealth and passive income; without it one will never achieve true financial freedom.
Multifamily real estate investments with expert management is one of the most stable sources of cash flow in existence.
Multifamily real estate investments with expert management is one of the most stable sources of cash flow in existence.
Equity Capture
Equity Capture
Equity capture is when you purchase an asset for less than its true value. While difficult in equities and other investments, equity capture is common in real estate investments.
Equity capture is when you purchase an asset for less than its true value. While difficult in equities and other investments, equity capture is common in real estate investments.
That captured equity is immediately added to your balance sheet increasing your net worth. The equity can later be deployed by selling or refinancing the property to purchase additional assets.
That captured equity is immediately added to your balance sheet increasing your net worth. The equity can later be deployed by selling or refinancing the property to purchase additional assets.
The wealth-multiplying impact of capturing equity over years and decades cannot be overstated.
The wealth-multiplying impact of capturing equity over years and decades cannot be overstated.
Market Appreciation
Market Appreciation
The value of real estate assets tends to increase over time due to inflation of land, building materials and rental income. Many investors purchase a property and wait 10 – 20 years before selling it to capitalize on the market appreciation.
The value of real estate assets tends to increase over time due to inflation of land, building materials and rental income. Many investors purchase a property and wait 10 – 20 years before selling it to capitalize on the market appreciation.
To increase the returns created by market appreciation, Spry Capital focuses on purchasing assets in areas with strong population and job growth.
To increase the returns created by market appreciation, Spry Capital focuses on purchasing assets in areas with strong population and job growth.
Principal Pay Down
Principal Pay Down
Every month when the loan payment is made a portion of that payment goes to pay down the loan itself. Over time, the tenants are paying off the property and the equity in the property grows.
Every month when the loan payment is made a portion of that payment goes to pay down the loan itself. Over time, the tenants are paying off the property and the equity in the property grows.
Tax Advantages
Tax Advantages
Real estate offers many tax advantages to investors. Depreciation offsets most or all of the taxable income produced by the property, and may even produce excess (paper) losses that can be used to reduce taxable income from other sources.
Real estate offers many tax advantages to investors. Depreciation offsets most or all of the taxable income produced by the property, and may even produce excess (paper) losses that can be used to reduce taxable income from other sources.
At the time of sale even capital gains taxes can be deferred under certain circumstances using a section 1031 tax-deferred exchange.
At the time of sale even capital gains taxes can be deferred under certain circumstances using a section 1031 tax-deferred exchange.
Leverage
Leverage
One of the most significant advantages of real estate compared to many investment vehicles is the easy availability of leverage.
One of the most significant advantages of real estate compared to many investment vehicles is the easy availability of leverage.
With proper leverage, every $1 in equity yields $3-5 in borrowing power which multiplies your returns over time.
With proper leverage, every $1 in equity yields $3-5 in borrowing power which multiplies your returns over time.
Properly leveraged real estate investments produce 4-10 times the overall return of unleveraged investments.
Properly leveraged real estate investments produce 4-10 times the overall return of unleveraged investments.
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