When anyone mentions investing, most people think stocks and bonds, right? Sure, this kind of investing can make you rich – if you’re lucky enough. What most people don’t realize is that real estate investing is another great way to increase your wealth, but without as much risk as is associated when investing in the stock market. Yes, there’s still a risk, but the reward outweighs the risk in most cases.
If you’re looking for an investment opportunity, but aren’t sure about real estate investing, keep reading. Below, we’ll discuss four important reasons you should get into real estate and why you should stay in it.
1. Tangible Security
When you buy an investment property, you have something tangible – something you can see and touch. When you invest in the stock market, all you have is a piece of paper. It’s nice knowing you have something in your name that’s worth a measurable value.
2. Leverage
Banks won’t lend money on the majority of assets. However, they will grant loans with real estate backing. This allows you to purchase more properties totaling more than your cash flow actually allows, which in turn leads to higher returns on your investments.
3. High ROI
Real estate investments tend to have a higher return on investment than most other types of investing. For example, investing in a mobile home park could garner as much as a 20-percent cash-on-cash return regularly. This is extremely attractive to new and seasoned investors alike.
4. Lots Of Options
Real estate investing is really just a “catch-all” phrase. The reality is, there are many sectors in real estate investing to consider. There are single family homes, apartment buildings, RV parks, mobile home parks, marinas, self-storage, office buildings, assisted living, retail, and more. There are about 40 different real estate sectors, giving you the opportunity to choose the niche that best fits your interests and goals.
Real estate investing isn’t for everyone, but if you’re contemplating some sort of investment strategy, it pays to at least take a look into this fast-growing option. Many people have already jumped on the bandwagon and there’s a wealth of information out there to help you get started.
