The recent market difficulties has sent a shock wave through the minds of many real estate investors and caused them to doubt if they should buy land anymore. Buying land does not have to be frightening and if you keep these basic principles in mind, you should not have any problems.

I have always heard that using the banks money to buy real estate is a good idea, but buying your own real estate is best done using your own money. Putting the bank at arms length allows you to save money over the long haul and will limit any amount of control they have. There is no greater peace of mind than to have your home paid off, especially in the unsure times of today. I realize this is not an option for most people, so maybe consider it as an ideal more than anything else. For those whom this strategy is a possible or realistic one, real estate is the safest place to store your cash, and avoid being taxed on it.

Besides the fact that when you buy a home outright, you can always rent it and you will have a nice littler income generated from it. Let us say you earn $300,000 per year in your business and the income tax for your tax bracket would simply take about half of that amount, if not more. If you use the tax laws in the most advantageous manner possible, you can simply take your pre-tax income and spend it on real estate, which will offset your tax liability on your net sheet. I do recommend sitting down with your accountant to outline the exact plan to do this as your first step.

If you do not have enough money to purchase a rental outright, maybe you can save enough money to simply buy a building lot and wait until you can save up more money to build on it, after all, there are more than the market needs right now. Waiting on the extra building lots to be absorbed into the market may take time, but as soon as it happens the market will be a good bet again. They really are actually a good one right now, they simply will not yield much return for a while which makes the scenario in which you would invest an investment with a higher return more appealing.

I advise people to buy with any means, other than bank financing, due to fees, interest and other prosperity killers. Buying building lots and letting them sit empty or joint venturing with a builder is a good idea as long as you are not left holding the bag for the fallout if things go sideways, as they sometimes do.

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