Real Estate Investing
Have you ever thought about adding real estate investing to your investment portfolio? From our experience most investors have overlooked this powerful investment tool that can help achieve higher-than-average returns with lower risk. The reason? Real Estate investing is perceived to be a hands-on, do-it-yourself type of investment. Quite often we hear potential investors say, "I thought about real estate investing before, but it's tenants, toilets, taxes, late-night phone calls, and vacancies." This is true for single-family real estate investing because the economies of scale are not big enough to hire competent property management. Also, repairs and maintenance expenses are not taken into account when calculating the return on investment. However, in apartment investing, repairs and maintenance, along with property management, are built into the analysis giving you a more accurate picture of the return on investment. You also don't have to be worry about running the apartment complex day-to-day when you have a competent property management company doing these time consuming tasks for you.
Real Estate Investing is also a great hedge against inflation. With today's U.S. financial policy, it's almost impossible for inflation to not rear its ugly head sometime in the near future. When you have fixed debt, like a mortgage on an apartment complex (which is your biggest expense), your payment stays the same. The value of the apartment complex will rise, the rents charged to tenants will rise, but your biggest expense stays the same increasing your profit margin and your return on investment.
In addition to the above, perhaps the best reason to get into real estate investing is that real estate is on sale right now. As everyone knows the best time to buy is when prices are low. There are numerous indications that we are the bottom of the business cycle right now. Couple this with record low interest rates and there may not be a better time than now to get into real estate investing.
Still not convinced? Did you know that 10% of the Forbes 400 Richest Americans obtained their wealth directly through real estate? What the article fails to mention is how much real estate the other 360 Billionaires own. It is also estimated that 90% of all Millionaires in the U.S. derived their wealth through real estate. This alone is a strong case to add real estate investing to your portfolio of assets.
To learn how you can get involved in real estate investing please join us at one of our weekly free Why Buy Property Introductory Workshop s. Just click on the button at the top of the page to register.
|