The real estate investing business has been gaining popularity in recent years, and this trend is likely to continue in the future. Everyone in the US – from college students, through working people, to retirees – has at least once considered the idea of investing in real estate. But why are real estate investments so popular? What are the reasons that so many people are looking for opportunities to become a real estate investor?
Here are some of the top 9 reasons for anyone to become a real estate investor?
1. Make money right away
Let’s speak frankly. The main reason to become a real estate investor is to make money. Real estate investing actually gives you the opportunity to start making money almost immediately. As soon you have bought a rental property and fixed it up, you are ready to start renting it out. The rental income that you get from your tenants will provide this instant source of money. While you will most probably need to spend some of your rental income on covering the monthly mortgage payments, the property tax fees, insurance, and others, you should still be left with some money to put in your pocket (or bank account). That’s why it is important to always go for positive cash flow real estate properties.
2. Make money in the long term
It is a great idea to become a real estate investor because investing in rental properties will bring you money not only now but also in the future. First, you will continue renting out your income property for as long as you own it (provided that no major housing market crash occurs). Second, you always have the option of selling your rental property when you have gained enough real estate appreciation. You should choose your investment properties carefully in locations that are likely to appreciate majorly in the future.
3. Invest in relatively stable assets
Investing in real estate is definitely more stable than investing in stocks. It is hard to just lose everything in real estate as long as you don’t fail on your mortgage payments and your income property doesn’t get destroyed without being properly insured. Even if you face high vacancy rates or some damage to your real estate asset, you will be able to make up for it when conditions become more favorable. So, that’s one more reason to become a real estate investor.
4. Invest in something affordable
The price of rental properties is why not even more people go for real estate investing. With a 20% down payment, it seems hard to save up enough to just buy an investment property. However, your first rental should not be anything extravagant and you should choose your housing market carefully. It is totally feasible to find a property with a potential to make some decent rental income for around $100,000 or even less. Mashvisor will help you in your search for such an investment property. Moreover, there are alternative ways to finance your purchase, so you should do a lot of research and networking to figure out the best way to buy your first income property. This flexibility is another reason to become a real estate investor.
5. Work on your own
While real estate partnerships could be a great way of buying expensive rental properties and/or expanding and diversifying your real estate investment portfolio, you can totally work on your own as a real estate investor. So, here you have yet another motivation to become a real estate investor. In this business, you don’t have to have a boss on top and to be responsible for other employees below you in the hierarchy. You can just do everything on your own, be your own boss, and know that it all depends on you. In a sense, real estate investments give you a sense of independence.
6. Work with other people
You should still become a real estate investor if you like to interact with people and work with them, rather than in isolation. While you can make all the real estate investment decisions, you will still need a wide real estate network of various professionals such as other real estate investors, sellers, buyers, real estate brokers, real estate lawyers, bankers, bookkeepers, and others. You will also need to deal with tenants, whether good or bad, so no worries – real estate investing will not deprive you of the fun of working with people, if that’s something you enjoy.
7. Choose from endless opportunities
What’s a better reason to become a real estate investor than the many real estate investment opportunities that you will be able to choose from. There are so many strategies and types of properties and rental mechanisms and locations that you will never be bored when investing in real estate. Depending on your situation (budget, location, knowledge, skills) and preferences, you can go for fix-and-flips, Airbnb rental properties, real estate wholesaling, real estate crowdfunding, investing in REITs, and many, many others. This means that everyone can find something appropriate for him/herself in the world of real estate investments.
8. Grow all the time
Yet another reason to become a real estate investor is the fact that you can constantly grow in your business. You can start with a single rental property and then easily buy another one in a couple of years, once you’ve made enough money and gained enough experience from your first property. In no time you will turn into the proud owner of multiple investment properties – in your location, in neighboring cities, and out of state.
9. Prepare for retirement
Some people are looking forward to retiring imaging all the things they will be able to do once they don’t have to go to work five days a week. Others actually dread this moment because they fear they will be too bored without a daily schedule. One thing that’s nearly universal though is the worry that you will not have enough money to live comfortably after you retire. That’s exactly the reason to become a real estate investor at a young age – to prepare financially for your retirement. No matter how much you receive in the form of a pension, it will always be great to have some extra cash in your retired years. After all, that’s when you will have all the time needed to try out new hobbies and to travel around the world.
We are all constantly looking for new opportunities to make money through a job, a business, an investment, or in any other way. Real estate investing is indeed one of the best ways to achieve that goal, whether as a part-time or a full-time investor. Once these 9 reasons to become a real estate investor have sunk onto you, make sure to check out Mashvisor for the best real estate investment properties available across the US.