This age old expression has been widely used for years.  Its application extends into the real estate arena as well.  It is noteworthy, though, that when it comes to investment and financial freedom, pride should have nothing to do with the decision to own a home.

In previous articles I have commented on the many avenues to wealth that real estate investment affords.  Even when it comes to one’s personal residence, it’s good to think like an investor.  Since a healthy percentage of U.S. voters also own their homes, it stands to reason that many laws would be in place that protect and assist these homeowners.  And that is exactly what has occurred!

Federal tax laws do favor those with a mortgage.  Why over 90% of each typical mortgage payment is fully deductible, while personal rent is not.  In most cases, this will far exceed the standard deduction and provide the homeowner with significant tax savings.  That is simply money in your pocket!

Added to that, take the depreciation factor.  Congress allows you to deduct the “improved value”(often 75% of the purchase price)from your taxes over a period of several years.  Again, that is significantly more money in your pocket each year.

Another exciting shelter the government provides is the exemption homeowners are allowed upon sale of their primary residence.  This is my favorite.  Every couple of years or so, you may sell your home and move.  Any gains(profit)realized from the sale can be yours tax free.

Here is the stipulation:  You must have lived in the property at least two out of the last five years to qualify.  This can be done to the tune of $250,000.00 each time.  Married couples can go up to $500,000.00 without paying any gains taxes.

How about that?!  There really isn’t much more one has to do to qualify for these advantages.  This is a sure way to financial independence if one follows the “buy low, sell high” principle.  Today’s real estate market is positively the best in decades for doing just that.

So, the wisdom of homeownership is clearly measured in dollars and cents.  Pride should not be a consideration in making decisions that will affect your financial future.  However, if you like, be proud that you had made your single best economic move when you decided to buy your home.

Strapped for cash!  Economic uncertainty!  Fear of the unknown!  These are some of the emotions that govern the thinking of most people today.  Nonetheless, the fact that real estate investment is still the smartest way to achieving financial independence remains irrefutable.

Wasn’t it Carnegie who originally said to “get aggressive when everyone is fearful, and be fearful when everyone is aggressive?”   Recently Warren Buffet was quoted as repeating the same adage.  If these famously wealthy businessmen agree to that strategy, then one has got to get busy now!

Earlier this year I was in San Francisco and saw a billboard.  It read:  “Bill Gates stared Microsoft during a recession.”  Are we seeing a trend here?  It would seem that the most successful see opportunity where others see peril.  Are you programmed like these entrepreneurs or are you like the majority of the world’s population…motivated by emotion?  If you feel you are in your element with these great history-making men, then you likely see that we are at the right place to create wealth in this housing value decline.

More pointedly, I believe we are facing the perfect storm for cash home buyers across the United States.  The secret is out and many Europeans, Asians, Middle-Easterners and others have recognized that America is on sale and they are already scooping deals on our home turf every day!  So, to answer the question at the top of the page:  Yes.  Only IF you see the “glass half full.”

Before embarking on any business venture it is always wise to do your research, set a mission statement and plan of action.  Before that, though, one must do some soul-searching in order to determine whether he or she is proceeding with the mindset of the great entrepreneurs or plagued with the typical negativity of the general populace.  Make sure you have a clear vision of the opportunity and determine to KEEP that vision clearly in mind.  Maybe even write it down and hang it on your refrigerator door, but do it.

It is imperative that a new real estate investor seek the right groups and networks in order to conclude deals with ease, moving quickly onto the next one.  A website you can check out is www.invesdoor.com for an example of a reputable group.  They have an extensive buyers list from all over the world and independent territory managers nationwide.

Another factor that has played into the success of most if not all wealthy capitalists is having a mentor.  There has usually been someone behind the scene coaching and leading by example.  Ask anyone who has done something of high significance and they will likely tell you of those who inspired them.  The REI market is no exception.  We all need a mentor at some point.

Unfortunately, there is no end to the “gurus” wishing to sell us some “program” for a lot of money.  In reality, their responsibility ended when your payment was processed.  In my opinion, it is best to find a mentor willing to teach you and then partner up with you for a time, splitting the profits off each deal.  That’s what your business will need entering the uncertain market conditions of the future.  So cheer up!  Do some self-analysis and adjust your thinking to “positive.”  Opportunity is knocking.