Why invest in real estate? Over the next several weeks I hope to answer that question for you. If you know me well you know I love real estate. In the next few posts we’ll talk about why it’s such a great investment, we’ll talk about different ways to invest in real estate and finally we’ll discuss the downsides. I’m sure you’ve already heard about some of those. For today, let me just share a few thoughts.
A Great Investment
Real estate is the single greatest investment vehicle for wealth creation. Many millionaires either made or hold the majority of their wealth in real estate. With discipline and hard work it’s possible for almost anyone to significantly increase their wealth over time using real estate. Real estate provides several different income sources from a single asset.
Ways To Invest
There are almost as many ways to invest in real estate as there are types of real estate. You could invest in single family homes, multi-family properties or commercial properties. You can be a passive investor and have someone manage your properties; invest in a syndication or a REIT. Maybe flipping properties is more your style. The possibilities are almost endless.
Tenants! Don’t let them scare you away. While it’s true there are many landlords with horror stories, the reality is that there are good people out there looking for housing. Finding them is the key to success. Typically, real estate is a long term investment that can be time consuming. Although many people talk about real estate as a passive investment, managing your properties may not feel so passive. If you manage your own properties you’re always on call. If an issue arises you’re the one the tenant calls and this may happen at inconvenient times.
I hope this post has you thinking. Real estate investing is not for everyone, but if you have the personality for it, it can be a great way to build wealth. If however, you don’t have the personality for it, you may just build your blood pressure. We’ll examine the topic in more detail in the coming weeks. If there are aspects of real estate investing you’d like me to cover in this series, please comment below.