With all of the investing options out there, it can be hard to decide which to invest in. While I think that you should diversify your investing portfolio, I am a HUGE advocate for real estate investing and in this post I am going to share a few reasons why.
#1: Real estate investments are tangible. This means that it is a physical investment that further makes it distinct from other investments such as cryptocurrencies and stocks. It also allows for a good amount of tax benefits.
#2 Real estate will always hold some sort of value. Even when the market goes up and down, real estate always has a value. Let's face it... people will always need a place to live. So whether it's flipping and selling or holding and renting properties, there will always be a demand. That's why it's also important that you are in the position to hold onto your properties through all the financial seasons. Think about the 2008 housing crash and how many people were able to profit because they could hold onto their real estate investments OR buy everyone else's. Always be prepared.
#3 There is so much potential for quick growth. That is why so many people benefited from Austin, TX. The early investors were able to make a huge profit because of the supply and demand within the area. While we may not always strike gold and invest early enough in a city like Austin, there are plenty of other cities to get started in that will still create a great return on your investments. (Check out my other blog post about why I invest in the Midwest)
#4 You can make money pretty quickly! Unlike your 401K or Roth IRA, real estate investing can allow for immediate cash flow. Don't get me wrong, I think you should have multiple flows of income and savings... but if you are flipping homes you can see a nice return within that same year or purchasing. On the other hand, rentals can provide slower yet steady opportunity for financial growth. Most of the homes that I buy in the midwest completely make up their investments (including purchase price) within five years. That means that after those five years I've already recouped my investment and it is straight cash flow!
Leave a comment below why you think real estate investing could be beneficial!
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