Gideon Pfeffer, founder and CEO of Portfolio Builders, remembers being told that “real estate isn’t something they are making anymore.” As an experienced asset manager, he sees the value of investing in real estate now more than ever. Not only is it a commodity, but it is also a tangible, accessible investment that can provide excellent returns when chosen wisely. Below, he shares his experience five reasons real estate is the best investment option out there.
- There is more than one way to make money with real estate.
As an investor, one can buy a property that produces income, buy a property that can increase in value and then sell it at a profit, and/or benefit from special tax incentives that are available when one owns real estate. There are various tax deductions and write-offs one can take advantage of, which can be further detailed by a tax attorney or certified public accountant (CPA). Regardless of how you make money on real estate, there are countless options based on what works for the investor.
- Real estate is a tangible, easy-to-manage asset.
I like real estate because it is a hard asset, meaning I can touch it, feel it, and see it. It is a tangible asset, unlike the stock market. Real estate is also relatively easy to understand in terms of value and benefit, particularly when you invest locally or in an area with which you are familiar.
- You get to decide how involved you are in your real estate investment.
Choices, choices! Real estate investors can be as hands-on or off as they prefer.
For the very passive investor, there are large funds or real estate investment trusts (REITs) in which most individuals can invest. These REITs invest in many properties and the investor earns a return based on his or her percentage of the overall investment pool raised by the REIT. On the other end of the spectrum, an investor can be very involved in real estate. He or she can seek out a house or commercial building to buy, do construction and renovation if needed, and even place a tenant inside and collect rent.
It’s all up to the individual!
- When you’re a landlord, the cash flows.
Cash flow or income from a real estate investment happens most often when someone owns or buys a property that can be used for a specific purpose, such as renting out to a tenant in a house or apartment building. As you probably know, after a landlord and tenant agree on terms for use of the space and a time frame, the tenant begins to pay rent. The income received is called your “cash flow” – monthly or annual monies earned. With the right guidance in choosing the best real estate for you, this is a simple way to make money. Turnkey investments (properties that are ready for immediate use) are a very attractive option. Turnkey investments in Florida and turnkey investments in Detroit are just two options and areas known for their excellent returns on investment (ROI).
- Wisely Chosen Real Estate is Profitable...and Fun
Real estate is a fun and exciting way to supplement your income and become financially independent. If you are new to real estate, it is recommended that you do your research into what might be the best type of real estate for you. Then, it can be recommended to work with a professional with a proven positive track record. Finally, if a deal looks "too good to be true," it probably is. I always ask myself when I see a deal that just looks great, "why am I so lucky to be getting a chance to buy this deal". Usually, there is a reason.
To get more helpful tips and discuss your investment options, visit www.portfoliobuilders.com or e-mail contact@portfoliobuilders.com.
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