If you’re reading this article, then I have to believe that you are considering investing in real estate or at a minimum you are doing your research to make that decision.
I am sure you’ve no doubt been bombarded with a slew of information from a number of different sources as you've done your research with each one telling you something different.
Some will try to convince you that no, real estate investment is a terrible idea and you shouldn’t do it, ever!...while plenty more will say yes, this is the way to go if you want financial freedom.
We all know the typical ticks with fast cars, airplanes and sandy beach pictures in a hammock. To show a picture like that every once in a while while talking the retirement benefits is one thing. To use those images every single time you discuss real estate is quite another...
I have to admit though, when it comes to planning for and building a retirement plan, we love real estate investing. Not just because we’re a turnkey real estate provider, but because we’ve seen firsthand how this business has paid off for our clients.
Once you experience something firsthand and see it all around you, you start to believe in it.
We wouldn’t be in this business if we didn’t believe in it, that’s for sure.
These are 7 reasons we stand by real estate investment as a means to financial freedom!
7 Undeniable Benefits in Real Estate Investment
There’s a low barrier to entry.
Investing in real estate doesn’t have to be a big ordeal—the path to getting started doesn’t have to be a big, long, complicated process. There are definitely things you need to know before you dive in, but you don’t have to be a real estate whiz or rich to invest. Just about anyone can invest in real estate in some form or fashion, and with the potential to scale and grow down the road, your opportunities are ever-expanding!
There’s endless variety.
You can say what you want about investing in real estate, but you can’t say that it’s boring. There are so many different avenues investors can go down. If you’re in our area of expertise, turnkey real estate, you’re the kind of person who likes to be more hands-off and typically deals in single-family investment properties. Even then, there’s variety to be found in all of the markets across the country that you can get involved in!
Then there’s all the types of properties and investment methods: vacation homes, apartment buildings, commercial real estate, single-family homes, offices, land development, flipping, wholesaling, and more! There are so many opportunities for real estate investors to find their niche and really discover what they love to do in real estate investment.
You stand on the shoulders of giants.
One of the things we love about real estate investment is that no one has to reinvent the wheel. We’re in an industry that is proven and time-tested through the effort, error, and success of many before us. Even now, we have a strong community around us that we can look to for support. This business, even with modern innovations, has core truths and mechanisms that don’t change. That’s a big comfort, especially when so much of life seems uncertain. We can fall back knowing that some things about investing in real estate are just true.
Real estate is comparatively stable.
So many investments are unpredictable. Think about things like gold, which was pushed so hard as an investment in the 2000s. Who talks about gold anymore? No one, that’s who. Then there are stocks, which can be going great one day, but take a dive the next based on international market fluctuations or PR disasters that you have no control over.
It’s unreliable and rather risky to invest in something so unpredictable.
Real estate, on the other hand, it pretty predictable. Some may point to the bubbles and crashes and cry foul, but buy-and-hold investors who were in it for the long-term barely had to bat an eye. Real estate markets go in cycles, and fairly predictable ones at that. Investors can learn to see what’s coming—and weather whatever the fluctuations throw at them.
Two words: leverage and scaling.
Two of the biggest advantages that real estate has over other types of investments is leverage and scaling. While you may be able to do one or both of these in other investments, it’s rarely possible on such a scale or pace. Leverage, which refers to the ability to use borrowed capital to increase the potential returns on your investments, allows investors to make many without using all that much of their own. Whether that’s private money, bank loans, or something else, leverage is valuable!
Scaling, too, is key, and it’s especially powerful when combined with leverage. You can compound your cash flow by scaling your investments (acquiring more investment properties). Where in other investments, and increase might only create a negligible increase in profits, the increase is significant in real estate investment.
You call the shots.
Here, too, you’re the boss. You’re not just throwing your money into a big, faceless investment pot and hoping things pay off for you eventually. You are actively directing your own financial future.
There’s a lot of power in that!
It can be as passive as you want it to be.
That said, your investments don't have to be this big consuming thing if you don’t want it to be. You may be in the captain’s chair, but it doesn’t have to be your full-time job. Through a turnkey real estate provider, you can be comfortable with a more “hands-off” approach, allowing other professionals to take care of details.
They’ve already found perfect investment properties, may have completed renovations, or will take the lead in doing so, and usually already have a tenant in place so that your property will already be generating income for you. Their property management team will also ensure that you don’t have to worry about the day-to-day details.
It’s not the solution for every real estate investor, but for busy professional who want to invest part-time? It’s ideal.