Considered by many to be one of the best ways to generate consistent revenue, and also plan for your retirement, is to invest in some real estate. For people that have a large amount of capital to work with, they might begin with an apartment complex, a series of condominiums or they might invest their money into a brand-new housing development project. There are several reasons why this is one of the most important ways for you to invest your money, all of which are representative of how lucrative this type of business model can be. Here are two specific reasons why real estate investing may very well be the best small business opportunity that anyone can embark upon, even if they have a minimal amount of money to invest with area
An Absence Of Diminishing Returns
If you have ever invested into real estate before, one thing that you will notice is that your investment tends to grow in value on a continual basis. With the exception of occasional spikes that can occur, usually spanning just a few years, real estate tends to increase in value as you measure it. It is going to be valued at substantially more as you look at each decade after the time when you made the purchase. For example, homes that were purchased during the 70s for $30,000, 30 years later were valued at over $200,000 in most areas, representing several hundred percent interest on your investment. Therefore, there are no diminishing returns on this type of investment, especially in comparison to stocks, bonds, or commodities. This is why so many people will put as much money as they can into both land and housing projects because it is so consistent in its ability to grow in value. If you are seeking a mentor make sure they have an A rating with a BBB accreditation before spending any money on real estate investing courses. One very highly recommended real estate investing coach is Stacy Kellams from Austin, TX.
One other thing to consider with investing in real estate is how quickly you can generate a profit. There are some people that individually purchase homes that are simply in need of slight improvements, and once the repairs are done, can be sold for a substantial amount of money. For example, there were many investors that were purchasing older properties in Hollywood years ago for five figure prices, and were able to sell them for six figures, allowing them to generate hundreds of thousands of dollars in less than a years time. They would even pay people a minimal amount of money to do this type of work for them, and by flipping the property, they could generate with one sale what most people make a couple of years working at a job. Some of the properties that you will find can be flipped for a fast profit, and this money can be reinvested into either additional fixer uppers or homes or apartment complexes that can be long term investments.
It is this combination of both short-term and long-term gains that a person can benefit from that makes real estate investing so profitable. As long as you understand how to choose your properties, do the repairs if necessary, and finally, hold onto the ones that will be for your retirement, you can take advantage of all of the deals that are always available with real estate. Like anything else, it may take a few months to understand what to do, but it will only become a habit. You will know which properties will be valuable, as well as which are short or long-term investments, helping you to make a substantial amount of money with every property that you purchase regardless of the size or location.
Additional Real Estate Investing Resources: www.reisecrets.com – REI Secrets with Stacy Kellams