Real Estate Investing
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Appreciation
Growth in the value of real estate
Capital Gains
Profit that is earned from the sale of an asset
Liquidity
Quickly converted into cash
Tax benefits
Reductions in income taxes through deductions or credits
positive cash flow
Rental income that exceeds expenses
Leverage
The use of borrowed money to purchase real estate to invest in.
Equity
The value of real estate above any debt on that property
Capital gains tax
tax paid by businesses and investors when they sell stocks or real estate for a profit
