If you are asking yourself, 'is real estate a good investment,' the answer is yes! Real estate investing can reap big rewards over the long term and set you on a successful financial path. In the past ten years, housing wealth grew by more than $8 trillion - now is the time to invest!
Before investing in real estate, there are a few things you need to know, including real estate trusts and property management. You should also know about cash flow.
Read more about real estate investing for your financial future.
Real Estate Investment Trusts
Saving money for a second home is a barrier to real estate investing. With a real estate investment trust, you can diversify your portfolio and get a great return on your investment.
Instead of investing in one property, a REIT puts your money in a company that buys real estate. All of these properties produce income. It's much like investing in stock, where you reap the rewards of the entire real estate company.
A REIT gives you access to commercial properties. And not just small places, but larger properties such as shopping malls and office buildings.
Many people who own homes for rent do all the maintenance, rent collecting, and tenant screening alone. Hiring a property management company can save you time and money.
A property management company can do these things for a small fee. Property managers are experts and have a list of plumbers, electricians, and contractors to call when there's a problem. They also know how to screen tenants properly, so you can avoid discrimination accusations when advertising your homes for rent.
Spending less time managing a property also means spending more time with family and friends. You can also spend extra time looking for other business opportunities when property managers look after your real estate investments.
Real estate investing can bring significant cash flow as you grow your portfolio. You will quickly learn how much income your real estate investments will bring in each month. It's important to sit down with a financial planner to figure out bills and mortgage payments.
There are things you must prepare for, however, including missed rental payments and appliances that break down. Have a contingency plan! Of course, the more money you bring in each month, the more you widen your safety net.
The extra money you earn with real estate can be used for college tuition, retirement, or to buy more real estate.
Is Real Estate a Good Investment? You Bet!
So after reading this article, are you still asking, 'is real estate a good investment.' We hope you are sold! Once you understand REITs, property managers, and cash flow, you're in good hands.
Contact us today and let us help you learn about the positive benefits of real estate investing. You will never see how your real estate will produce lucrative profits!