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The cash flow received from rentals is not subject to self-employment tax, the government offers tax benefits including depreciation and significantly lower tax-rates for long-term profits.

When you buy a rental property using a mortgage, your tenant is actually the one paying the mortgage payment, thus increasing your net worth each month. Because of the loan pay down a rental property is essentially a savings account that grows automatically, without you depositing money each month.

Generally speaking,  property values gradually climb. Which is why it's a good idea to plan to be involved in real estate over a longer period of time to give your investment (i.e. property) time to appreciate.  Taking a long-term approach to real estate investment, much like investing in the stock market, helps to avoid any short-term dips in the market.  

Inflation is the process by which prices increase due to the value of money decreasing.

While most people fear inflation, as a rental property owner, you should look forward to it because the one thing that won’t increase is a fixed-rate mortgage payment. 

As inflation pushes the cost of living higher, your cash flow will only increase. This is why real estate is often called a hedge against inflation. 

Many people choose to invest in real estate; knowing that they are ultimately the one who is responsible for their success or failure. In other words, you get to control your destiny and your financial future with your own two hands. 

Amortization is an accounting term that refers to the process of allocating the cost of an intangible asset over a period of time. It also refers to the repayment of loan principal over time.

Appreciation is an increase in the value of an asset over time. The increase can occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates.

Equity in a property is how much the stake in ownership on a property is worth.  It is the difference between the current market value of a property and the amount owned by the owner on a mortgage. 

Specific type of asset-based loan financing through which a borrower receives funds secured by real property. Hard money loans are typically issued by private investors or companies.  

Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.

A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity (i.e. purchasing a rental property).

A normal position where the cash that flows into the company is higher than the cash amount that flows out, during the same period of time.

A mortgage is a considered to be a "private" mortgage if the lender is not a Schedule 1 or Schedule 2 bank, registered loan or trust company. Private mortgages are frequently used for short term renovation projects.

A sales and purchase agreement (SPA) is a legal contract that obligates a buyer to buy and a seller to sell a product or service.  SPAs are found in all types of businesses but are most often associated with real estate deals as a way of finalizing the interests of both parties before closing a deal.

Simple interest is a quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.