1st Capital’s 10 Reasons to Invest in Real Estate
While investing in real estate does come with potential pitfalls and does require research, it can also bring plenty of cash to your bank account. Here are some of the most important reasons to invest in real estate. (Just remember: Appreciation and cash flow aren’t guaranteed. You must research properties and neighborhoods to increase your odds of generating a profit.) I always give my clients this disclaimer, just to be safe.
1. Steady Cash Flow
Owning real estate is a way to boost your monthly income. Whether you invest in commercial real estate or residential, you can rent out your space to tenants.
2. Great Returns
If the real estate you own increases in value over time, you can sell it for a solid profit. Remember, though: Appreciation isn’t guaranteed. You’ll need to invest in the right property to see those big returns.
3. Long-Term Security
Real estate is a long-term investment, meaning you can hold it for several years as you wait for it to appreciate.
4. Tax Advantages
Investing in real estate comes with tax benefits. You can deduct several expenses associated with owning an investment property.
5. Diversification
Adding real estate to your investments boosts your diversification, which can protect you in times of economic turmoil.
6. Passive Income
Investment properties bring much-desired passive income, that which you don’t have to work for every day.
7. Ability To Leverage Funds
When investing in real estate you probably can’t afford to buy properties in full. After all, that single-family home you plan to rent might cost $200,000 or more. That’s where leverage comes in. Leverage in real estate means you’re using other people’s money to purchase properties.
8. Protection Against Inflation
Real estate investments are considered protection against inflation. When the prices of goods and services are rising, home values and rents typically increase, too. Investment properties, then, can provide you with rising monthly income and appreciation to help protect you financially when the costs of everything else is going up, too.
9. Chance To Build Capital
The big goal of real estate investing is to increase your cash, otherwise known as building capital.
10. Fulfillment And Control
Owning investment properties comes with other benefits that aren’t financial. When you own investment real estate, you are your own boss, which is fulfilling to many investors.
I have been fortunate to work with some very wealthy clients over the years. Some we helped to build their portfolio, others came to the table already established, either way, we were able to help enhance their lifestyle by giving them sound investment advice and recommendations. If you are looking to build out your current portfolio or just get started. We can help.
Find us on LinkedIn, Twitter, Instagram, www.1stcig.com, [email protected], 312-243-3907 or 312-952-8040/ cell.