Mousa Ahmad Helps You Decide Why Real Estate Is Right For Your Portfolio
While the real estate market has seen highs and lows, it is not nearly as volatile as the stock market. With no control over your investment, your luck of the draw with stock markets can become very stressful and tedious. If you’re looking to grow your money into a large sum, over a period of time, then real estate investment is your best option. As a real estate professional, you have the opportunity to take control over your investment, ultimately securing your future. Here are a few reasons why real estate is a better option for your investment money:
- Lifetime’s Worth: A huge advantage of real estate is being able to throw away the retirement calculator. With people living longer each year, trying to stock away enough money to live on can be impossible to compute. With real estate, your investment is continuous. Rental properties can provide an endless supply of income, as long as you’re able to find a way to maintain and manage them for years to come.
- Immediate Income: Unlike stocks that have dividends at 4% on the higher end, real estate tends to sit at the 15 – 20% range of cash flow. With proper reinvestment and property management, the added value of being able to purchase more rental properties becomes a viable option. The immediate cash flow from real estate can create more options for you in the future.
- Endless Supply: Real estate is all around you, and your best option for investment is to stick to your local roots. Chances are you’re not a guru in the business model of a billion dollar company in Japan, but you do know of an up-and-coming neighborhood that looks like a great investment opportunity. By having accessible knowledge and resources at your fingertips, investing in your own area allows to control the situation and find the best deals around you.
- Buying Below Value: The option to purchase a property below market value is easy and obtainable. Off market properties can also create huge opportunities for cash flow, because you’re not having to fight with other real estate professionals. Stocks can only be purchased at the value the company has set, giving everyone the same price and option.
- Added Value: Additionally, after purchasing your property below market cost, you can add value to your new investment. Many people look to real estate to flip properties for a profit. The amount of money you’re willing to put back into a property to make it more appealing can ultimately create a faster turn around and quicker cash flow. By putting in $20,000 worth of repairs into a house or building, you can potentially increase the value by $50,000 more than what you originally purchased it for. Likewise, no matter how hard you try, your personal agenda with a stock will not add value to your option.