One other factor that is important to discuss is , again , the heart and soul of singlefamily home investing in the United States . The reason single family rental homes change futures so effectively and powerfully : The 30 year fixedrate loan . I talk a lot about the wonder of this loan . A very quick recap for new readers : The monthly PI payment never changes , while everything else in the US economy constantly changes with the cost of living . Same is true for the mortgage balance , which goes down due to amortization , but also never keeps up with the cost of living . This creates incredible futures for people , as inflation constantly erodes the real value of the loan balance and monthly PI payment . No need to wait for 30 years .
Typically , after 12 , 14 , 16 years , the loan balances are very small relative to the home price . The monthly payment is very small relative to the rent . It is not uncommon for a person to find , after 14 years , that the loan balance ( even though the loan still has 16 years to go ), is merely 20 % 25 % or so of the home price . Many
sell a couple of homes at this point , and use the aftertax proceeds to pay off several other small loans , and leaving several free and clear homes , enabling them to retire .
People also see how this can send kids to college ( even costly colleges ), and achieve many other longterm financial life goals .
The reason I hark back to this point in this article is to remind you that the most important point is to buy a good new single family rental home , put a down payment , and then get the constant power of inflation and the payments by the tenant to pay off and erode the loan balance , building equity for your future wealth . With today ’ s astoundingly low rates , strong results may be seen even sooner , perhaps 10 , 11 years .
The singlefamily home is the VEHICLE to let inflation work its magic on the 30year fixedrate loan . The location of where you buy the home ( as long as it ’ s large metro areas in the Sun Belt states , where the numbers make sense ), is of secondary importance . It would behoove the smart investor to buy in
Image by R H from Pixabay a market where the prices are not “ bonkers ” and where the rents measure up to the price well , preferably in an environment where property tax and insurance costs are low . This enables the owner to enjoy cash flow ( especially with today ’ s low rates ), while building their wealth for the future with the help of inflation .
ABOUT ICG AND ADIEL GOREL
ICG ( International Capital Group ) Real Estate Investments was established in the 1980 ’ s . Adiel Gorel , founder and CEO , has been helping people achieve financial security for over three decades , and in that time worked with investors to purchase over 10,000 homes . Gorel is a real estate broker in several states in the U . S ., an international keynote speaker , and notable author of three books : Remote Controlled Retirement Riches – The Busy Person ’ s Guild to Real Estate Investing , Invest Then Rest – How to Buy SingleFamily Rental Properties and Remote Control Retirement Riches – How to Change Your Future with Rental Homes . He has been featured on major television and radio networks across the country and in Fortune Magazine . He has also been featured on Public Television with his show , “ Remote Control Retirement Riches with Adiel Gorel .” To invite Adiel Gorel to speak for your group , email
info @ icgre . com and visit
AdielSpeaks . com . For more information on ICG Real Estate Investments visit
icgre . com .
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