real estate is the best investment

Why Real Estate Is The Best Investment….

I would be lying if I told you that Real Estate was the easiest way to get rich. Do you want to know why the real estate is the best investment? I would have to say that if you’re patient and content retiring with 5 to 20 million in your bank account, the stock market might be more up your alley. For any investor who puts a little work into valuing stocks the way Warren Buffet does, or who understands the major market trends created by Wall Street, annual returns above 12 % aren’t as uncommon as you might think. Given enough time, that provides quick enough compounding for most hardworking investors to retire quite comfortably.


real estate is the best investment

But Real Estate has some incredible aspects that may make it worth the little bit of extra trouble you have to go through. Sure, there are is much more to learn when you’re going out to find your own deals, negotiate your own contracts, do your own due diligence, and handle the unforeseen circumstances that arise. However, real estate creates more multi-millionaires than any other asset class for several reasons.


Diamonds hidden in the rough…..

When it comes to the stock market, it’s really hard to get the inside scoop. Everyone has access to the same SEC filings, the same news updates, the same charts, etc. Insiders such as large stakeholders and management have to report their trading activity to the SEC, and they must adhere to strict regulations about how they buy and sell. So even these guys have a tough time getting the edge generally speaking.

Warren Buffet has only been able to consistently outperform in the market by keeping a longer-term perspective than his competition, and buying in when the market has the occasional mood swing. Warren will sometimes have to wait years before the market offers investment opportunities that meet his standards.

However, in real estate there are always opportunities waiting to be discovered. Every day there are situations where homeowners have fallen behind on payments or repairs. Every day there are situations such as a divorce or death in the family where being able to come in as a speedy buyer can take a huge weight off of the seller’s shoulders. Every day there are real estate investors looking to cash out after a long successful career of investing. There are so many reasons why a house can be selling at a discount in any market at any time.

And unlike the stock market, they aren’t all listed on some public exchange for the world to see. Sometimes you have to market for them, or network for them, or just call a sign on the side of the road that says “For Sale By Owner.” Price isn’t the only important factor of buying a property. Speed and simplicity can also be grounds for negotiation when a motivated seller needs to make a drastic transition.


Leverage is a real estate investor’s best friend……

This may be hard to believe if you come from a working class background like I do. But there are lots of people out there with lots of money who are always waiting for the next opportunity to invest it. Of course they’re going to make sure that they’re putting their money where it’s likely to stay safe and grow. However, even you’ve got no money of your own, there are lenders and investors waiting to lend or partner up with you on the next deal you find.

Most people think that real estate investing requires lots of money. And some types really do. But others can be nothing more than finding the right property with the right numbers. Imagine you find a property where the seller needs to sell ASAP. So you tell them you can close in as little as a couple of weeks. You run the numbers, and find that anyone who flips this house can make $30,000.00 or more. You found the deal, you got it under contract. Now it’s time to bring this deal to those who need to park their money somewhere.

That’s the beauty of real estate. Not only are there always opportunities out there. But there are also people out there willing to help you get the deal accomplished even when you don’t have the money. And when you put $1,000.00 down to make a $25,000.00 profit, that’s about a %2,500 ROI. Good luck being able to consistently with any other type of investment.


Always have a plan B…..

When you buy a stock, and it goes down 20%, you can’t suddenly demand that the management starts paying you a dividend to compensate for your losses. But in real estate, if the market doesn’t permit to sell your investment property at a profit, you still have the option or renting it out. And if you’ve been shopping around for a discounted property, there’s a good chance that once you renovate it to be rental ready, it will produce a superior return on investment. Not only that, but many renovate and rent real estate investors refinance after they’ve renovated their property. They’re often able to borrow 10% or 20% more than they paid for the deal because the renovated property appraises higher. This can give you instant access to your equity while your tenant pays your mortgage for you.

So hands down, we will be the first to say that if you have the guts, real estate is always the greatest tool for transforming your financial situation. But you have to want it bad enough to learn what’s necessary.

About The Author


I am a college drop out who found my passion as an investor. I love the many facets of finance, investing, and business. But even more than that, I love sharing what I learn with others.

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