90% of all millionaires in the USA have acquired their wealth as a result of investments in real estate ownership. Real estate investment is in most cases not for those who look for quick riches, but it can be safe and rewarding when following these proven principles:

Income:
The investor receives monthly payments from the tenant - but real estate investment involves a    little more than just cash flow generated by tenants:

Expenses:
Expenses on real estate investments are tax deductable. These expenses include - but are not limited to -insurance, maintenance, utilities, management, and mortgage interest.

Depreciation:
A tax deduction is allowed by the federal government on investment property (39 years for commercial properties; 27.5% for residential properties).
Example: Annual tax deduction on a residential investment property purchased for $275,000
= $10,000

Exchange:
A real estate investor is allowed to transfer an investment property into another (1031 Exchange), more expensive property without paying taxes, which are deferred.
This allows the investor to increase his/her real estate portfolio while deferring tax liability.

Appreciation:
The increase in value of a property