Real Estate May be Your Most Strategic and Purposeful Investment
Real estate can be a strategic and purposeful investment for you.You work hard for your money and when you invest it purposefully your money should work even harder for you. As a little child I remember my father always saying that there is nothing or no one that works as hard for money as money itself. As a child I struggled to understand this concept. How can money work? As I grew up and started investing myself I rapidly acquired the respect that money can indeed multiple into more money through a number of vehicles. I believe the best vehicle to be purposeful with an investment is real estate.
Of course I am biased here as I have spent most of my adult life in the real estate world. Of course I have spent this time in real estate because early on I believed this to be true. Take a look at stocks or mutual funds. There are a few things you can do to protect yourself from losses and buying at the correct time has its benefits. When you really look into it, how much control do you have over the investment? How do you control if it goes up or down. If things start to change within a market can you actually do anything to control the outcome other than perhaps the selling asset or the fund?
Take a look at real estate. Here you definitely have more controls. If you purchase the property solo (without any partners), you indeed have full control of the acquisition and operations of the investment.
You get to be purposeful in acquiring the best property in the best area, and with proper diligence you can purchase a property that has long term sustainability.
You can be purposeful and control things like:
• Buying in strong job markets
• Buying in undervalued markets
• Buying within the sweet spot of a market
• Buying in areas with baby boomer appeal
• Buying in markets with strong local economies
• Buy properties that are structurally sound
• Establish returns on the investment from day one and know what the returns will be long term
• You can control (to a large degree anyhow) the outcome of the investment
• You can update the property to increase its returns as well as its total value which will increase your total yield
• You can buy with a small amount of your money and leverage OPM (other people’s money) such as banks to acquire a larger investment than you would be able to acquire elsewhere.
It is easy to see how investing in real estate can give you a lot of control that other investments simply cannot come close to matching. Real estate is a very strategic and purposeful investment.