Is real estate a good investment? Click here, or read below to find out.
Let me ask you a better question… Is there a more secure, high-upside, REAL thing that you can invest your money into? NOPE!
But, before we jump into the benefits, and the cons (yes, I’ll admit that there are some cons), let’s look at some other investments.
1. The Stock Market
The average return of the stock market
since the 1950s is right around 7%. If you, by chance, had a better return over the last handful of years, congratulations! I’m just stating the facts based on the last 70 years.
The good thing is that the average is in the green! Slow and steady wins the race with stocks.
If you want to be safe, slow and steady
works. But chances are, if you are reading this article, you don’t want to move slow. You want to move FAST!
If you want to move fast in stocks, you will need to be glued to your computer to learn the in’s and out’s of the stock market. And even if you study 24/6/365, at the end of the day, you are still speculating.
Many people have earned millions in stocks. Many have also lost their shirts because they didn’t know what the heck they were doing.
If you want to dominate the stock market, and see that as your way to wealth, good luck and more power to you!
2. Retirement Accounts
Depending on who you talk to these
days, retirement accounts are either scams or the best investment you can make.
The positive thing about retirement
accounts is it’s almost impossible to lose your money. Most people who invest early in retirement accounts have a nice retirement ready for them by the time they are 60 years old.
But there is the issue. You have to
wait until you are 60 or 70 to take out the money. And some accounts, while they are tax free to put money in, are not tax free to take it out.
The fees can really start to add up. That’s why people like Peter Reagan from Townhall.com are calling some retirement accounts total rip offs! Read article>
3. Businesses
So, your friend has an amazing idea for a business… He’s sold you on the idea. It sounds like a home run, no-doubt, great way to make money.
It could be the next best thing since Apple, it could come and go like Myspace, or it may never make a single dollar.
Are you ready to take on that kind of
risk for the capital they are asking for?
If you are, you had better believe in it. And you had better prepare yourself for hard times. That money may be locked up for a while, and they may even ask you for more if it starts to go under.
4. Real Estate
Now, for the reason you clicked on this article. Is real estate a good investment?
I’ve found real estate investing to be
the best investment, hands down! And here’s why.
First, there’s tons of ways to invest to make passive or active income. See the graphic below for the 7 best real estate investment strategies:
7 Best Real Estate Investment Strategies
Passive Real Estate Investments
1. Residential Rental Property:
Buy a house and rent it out for more than you pay for your monthly expenses. You cash flow, the tenant pays the debt, you wait for appreciation, you get great tax advantages, and you can earn yearly cash-on-cash returns of 6-8%. But your true yearly ROI is over 20%. Not to mention, if appreciation works out correct, you could see your investment triple after five years. Watch this video for the complete breakdown.
2. Apartments:
You own multiple doors and you can raise rents to raise your ROI. If bought correctly, one apartment complex could change your life!
3. Syndication
If you don’t want to find the rental property, then find someone who is an investor, and use your capital to be a partner in their deal. You receive passive checks every month that you are invested in the deal. A good return is 6-8%. And like other rental properties, your debt is being paid off by tenants, and you can wait for appreciation.
4. Private Money Lending:
Like syndication, you are a partner in a deal. However, private money lending is usually short term, but can have 10-15% returns while you are in the deal.
Active Real Estate Investments
1. Wholesale Real Estate Contracts:
You are the middle man between the seller and future buyer. Similar to a real estate agent, except you are not representing a seller or buyer. You are simply finding the deal below market price, and up-selling it to an investor at a higher price. Here is a video that will help explain this better: Watch Here
2. Fix ‘N Flip:
This is what you see on all of the HGTV shows. You buy a house way under market value, rehab it to force equity, and then sell it back on the market for market value.
3. Real Estate Agent:
Represent buyers and sellers in real estate transactions. Earn between 2-6% of sales prices.
And don’t forget, when you invest in real estate, it’s real! It’s not a piece of paper. It can’t disappear. It’s a piece of land that you can show up to, control, and improve whenever you like.
Plus, people will always need a place to live. That’s never going to go away. People will always be looking for a place to buy, rent, and live in for as long as they are alive.
The last benefit, and the one you probably won’t see until you get started is how it helps people.
From tenants, to property managers, to agents and title companies; you are giving people a place to live and putting professionals to work.
Now, I promised you cons, and I’m going to keep my promise.
You do have to deal with tenants.
Especially in the beginning when you are probably managing the property. After time, you will want to hire a property manager.
If something goes wrong, you are the
one in charge of fixing it. Electrical, plumbing, roof, etc. The house is in your name, so those are your problems to deal with.
If the market crashes, so does your appreciation. But guess what, your cash flow and debt equity are still getting paid by tenants!
If you still have questions, or want to get started, you will want to download my free “Ultimate Guide to Becoming a Real Estate Investor.” Go to the bottom of this page and type in your name and e-mail to download the guide for free!
All additional questions can be e-mailed to: kyle@fearlessflipping.com
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