Equity investing in real estate is defined as an investor providing capital to acquire ownership interest in real estate.
As a partial owner, the equity investor shares in the passive monthly cash-flow of owning investment real estate without the day-to-day management obligations.
Benefits of Equity Investing
Equity investment allows the investor to participate in the benefits of owning apartments. Real estate equity income is shielded by depreciation, which is a phantom expense that provides a shelter to the exposure of tax implications found in other forms of income. Additional benefits include monthly cash-flow, principal pay-down, appreciation, and other tax benefits.
- Monthly cash flow and equity from principal pay-down