Through real estate investing, many individuals are able to reach their financial goals faster than they thought possible and preserve their wealth for retirement and their families.
To start with real estate, many beginner real estate investors have started with little or no money. The fact is real estate investing is a powerful tool for building and preserving wealth no matter where you live and no matter who you are. There are no limits when it comes to real estate.
Unlike other business investments, investing in real estate is less risk because real estate is physical property and will always have value or some people call it “staying power”.
The demand for real estate will keep increasing as our population increases. Do economis impact the real estate market? Sure it does, the good news is that when the economy is slow, there are a lot of good opportunities for good real estate deals because there are less buyers in the market.
The key to building wealth through real estate is having the knowledge to understand the market swings and pressures and then being able to capitalize on the opportunities as you find them.
There will always be a huge supply of buyers in every market, fresh out of college, to married couples, to couples with family, couples looking to downsize…etc.
Let’s take a look at the high level benefits of investing in real estate and why you want to invest in real estate
Why should you invest in real estate business?
The benefits of investing in real estate are many, you can grow your retirement proftfolio, build passive income, build your networth.
If you are looking, forward to a better future and do not want to live the same lifestyle for the rest of your life then it is essential that you do some work at the moment so you can enjoy your future. One of the ways to secure your future is becoming a real estate investor. Here is why you should be investing in real estate properties.
- Own your own business
You can choose to work part time or full time when owning a real estate business. You can be your own boss and have your own schedule and goals. Let’s not forget if you love to travel, plenty of business write off opportunities when conducting real estate business meetings.
- To increase net worth and financial security
Real Estate typically appreciates around five percent annually. You can take advantage of this appreciation and let your real estate portfolio help you grow your net worth. The appreciation rate generally takes place as part of the natural market growth, essentially you are doing nothing and the value of your property goes up.
- To diversify your investment portfolio
Here are some real estate investor quotes from the smartest minds
“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” – Franklin D. Roosevelt, U.S. president
Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.” – Andrew Carnegie, billionaire industrialist
“I still think buying a home is the best investment any individual can make.” – John Paulson, billionaire
A funny thing happens in real estate. When it comes back, it comes back up like gangbusters.” – Barbara Corcoran, real estate investor
“Landlords grow rich in their sleep without working, risking or economizing.” – John Stuart Mill, political economist
- Real estate is a low-risk business
Real estate is land. Essentailly there is no way to create more of it. Even Warren Buffet invests in the most real estate. He recognizes there’s a limited supply.
- To achieve financial stability and secure family future
Consider home owners who purchased their homes 20 years ago, and now find themselves with $150,000 in equity in their homes, and have $100,000 extra in appreciation in value. These home owners can lease out the houses, enjoy cashflow paychecks, they can refinance the property and get $100,000 cash out from the bank to purchase more properties. The options for building your portfolio are endless once you understand the basics. Last but not the least, building wealth through real estate can be preserved and passed on through generations.
If you agree with these statements and want to make them happen, then investing in the real estate business is the right option for you. It is one of the lucrative business that will give you a good profit margin and lowers your chances of risk. The best thing about real estate is that you can still be an investor without investing money. Yes, you read it right; it is possible to get started with no or little investment. There are different types of financing strategies that will help you in becoming an investor without or little money.
Let’s begin with the basics
1. Set a Clear Vision
It is important that you set up a vision that you will be working to achieve. You need to reflect upon and categorize your personal and financial goals to make your vision more clear. The real estate industry is so vast that it becomes essential for the investor to stick to a clear vision to make it achievable.
2. Choose Your Real Estate Property
Once you have a clear vision of excelling in the industry as a real estate investor you need to make a choice between the types of properties available. You can choose any of the following:
- Commercial property
- Industrial property
- Residential property
3. Understand the type of real estate investments
There are different types of real estate investment, depending upon the amount of capital required. Here are the few of the categories:
- Buy and hold
Note: don’t just jump in being over excited to be a real estate investor, analyze every opportunity and what actions are required to make a profit, build self awareness whether you have the resources for the real estate profit strategy you intend to use.
Do not get lost with seminars and books that will have you spinning in all sorts of directions. Decide ahead of time why you want to invest in real estate, how many hours you want to be working on your real estate business and build your vision and action plan. If you are not sure how to make an action plan towards your goals, I have the perfect coaching program for you. Sign up for a free webinar on leveraging Real Estate to Build Wealth.
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