Real Estate Investing for Beginners

New to investing? No problem! The following information will help you see how investing in Real Estate can enable you to receive the greatest return on the money you already have sitting idly in your accounts.

Money

Whether you’re a seasoned veteran or just starting out, you innately know that the goal of any investment is to maximize your return. Many individuals choose savings accounts or even checking accounts to store their funds, where the average rate of return is 0-1% annually. At a 1% return rate, it would take 72 years to double your money. Considering the fact that the average life expectancy of US citizens is 78 years, it’s an understatement to say that this investment strategy is lacking – it’s abysmal. Want to learn how to double your money in a fraction of the time? Keep reading!

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Why Real Estate:

  • Higher Return Rate

The average rate of return for real estate assets was reported by the National Council of Real Estate Investment Fiduciaries (NCREIF) to be 8.4% from 2000-2010. Thanks to the Rule of 72, you do not need to be a mathematician to see how this return rate will impact you financially. You can easily find out how long it will take for an investment to double your return by dividing the rate of return by 72.

  • So, 72 / 8.4 = 8.57 years to double your initial investment. Not bad!
  • Increased Stability & Control

It is no secret that every investment carries with it an element of risk. In addition to having a higher average rate of return, real estate investing offers increased stability and predictability compared to other high-yielding investment ventures. When you own property and rent it out, you are guaranteed a set amount of income from your tenant(s) every month. This enables you to plan your finances with increased accuracy and confidence. In addition, real estate is a tangible asset while stocks and other commonly held assets are not. You can closely control the value of your asset by how much work you put into improving the property – this is something investors have virtually no control over when purchasing stocks.

  • You Don’t Have to be Wealthy – Yet

Real estate investing is more accessible to people than many other forms. You can easily qualify for a loan if you do not have the money upfront to purchase a property, and then rent it out to pay the mortgage. Eventually you will be able to pay off the interest and the principal, and the property will generate a wonderful profit for you. The point is, you don’t already have to be wealthy to add this powerful asset to your portfolio. You just need the right counselling, guidance, and a willingness to learn.

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Give me a call!

Call me at 916-960-4850 and we can discuss adding this valuable asset to your portfolio. With 14 years of experience, and over 1,000 homes sold, I have the expertise to help you make the right decision.

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Sources:

WorldBank – Statistics

Investopedia

Photos: Shutterstock

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