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Real Estate's New Reality

For patient investors there's income to be found.

This story appears in the July 2009 issue of Entrepreneur. Subscribe »

We've seen the infomercials and watched the reality shows. Some of us have even read the books and attended the seminars.

But does investing in income-producing real estate--long touted as the place to be for long-term growth and financial independence--still make sense after the beating the real estate market took last year and, in some parts of the country, is still taking now?

Hot properties: Where to look for real estate guidance A list of real estate clubs User ratings on books and courses

The Advanced Guide to , by Entrepreneur columnist Robert Kiyosaki For the bloggers' viewpoint

Mastering Real Estate Investment, by Frank Gallinelli
I think the answer is yes, and I'll tell you why. Think of income-producing real estate as a bond that pays you interest. As long as the has a rent roll that kicks off enough cash (after you pay your mortgage, taxes, insurance, repairs and other operating expenses) to provide you with a decent ROI, you're in the clear no matter how much the property's value may fluctuate in the meantime. As long as you're prepared to hold on to the property for the , you won't get burned like those speculators who bought houses when the market was hot and tried to flip them at a profit.

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