You must have frequently thought about the best ways to make money. There are plenty of options: working a full-time job, having several part-time jobs, investing in stocks, investing in real estate… The real estate investing trend has been growing significantly in recent years, and it’s not without a reason. The reason is that real estate investing is indeed one of the best ways to make money which gives real estate investors multiple advantages over other people trying to get rich. What are the main ones?
1. Deals with tangible assets
Potentially the most important feature which makes real estate investing one of the best ways to make money is that it deals with tangible assets. Real estate properties, unlike stocks and many other investments and products, is something that you can actually see and touch. That makes it attractive for people. Moreover, because as a real estate investor you own actual assets in the form of rental properties, it is hard to just lose everything. Even if the US housing market collapses again, you will retain your income properties and can start renting them out or decide to sell them when things come back to normal.
Related: 7 Reasons Why Real Estate Is the Best Investment Strategy
2. Brings short-term and long-term profits
Another reason why real estate investing is among the best ways to make money is that it gives real estate investors the opportunity to make money now and in 20 or 30 or 40 years. As soon as you buy your investment property and start renting it out, you will start receiving rental income and positive cash flow. Meanwhile, most – or even all – real estate properties increase in value over time due to real estate appreciation. This means that in a couple of decades you will own a rental property which is worth much more than what you initially paid for it.
3. Gives unlimited options
Real estate investments can take up so many forms: residential or commercial; single family homes, multi-family properties, or condos; urban or rural; in your city or out-of-state; traditional or Airbnb renting; etc. You can pay in cash or with a mortgage. You can invest on your own or in real estate partnerships. You can even opt for investing in REITs or through crowdfunding. This wide range of options is what makes real estate investing one of the best ways to make money. Every real estate investor can figure out the most appropriate investment strategy for him/herself.
4. Allows for multiple investments
While you cannot work several 9-to-5 jobs, you can (easily) buy, own, and manage multiple investment properties, each of which will bring you rental income. This means that the real estate business holds some serious opportunities to generate significant wealth, which is why it is one of the best ways to make money.
5. Is self-growing
Very few real estate investors – at least from the successful ones – remain owners of a single rental property which they purchased 30 years ago. Most of them, within a couple of years, are already the proud owners of a portfolio of income properties. Experts actually recommend adding a new income property to your investment portfolio every 2-3 years. While this might sound insane, it is quite feasible. That’s just the nature of real estate investing: it offers investors a variety of growth strategies. You could use the rental income to pay off the mortgage faster to free yourself of debt for another mortgage; you could use it to save up for a down payment on another rental property; or you could use it to start paying the mortgage on another investment property. The more rental properties you have with paid mortgage, the more new purchases you can make. It’s really a snowball effect in real estate investing. Doesn’t that count as one of the best ways to make money in the business world and beyond?
6. Requires minimum prior knowledge
Most real estate investors are not professionals, meaning that they have another full-time job and invest in real estate only part-time. They did not study real estate or investment or even business at college. They are just people willing to take some (reasonable) risk, to try out new opportunities, to expand their horizon, and to make profit, i.e., people looking for one of the best ways to make money. Real estate investing is easy to learn – partially due to the vast availability of learning resources such as Mashvisor’s website – as long as you are motivated and self-driven.
7. Offers many resources to learn from
Nowadays the real estate investment resources are as diverse and rich as the business itself. Whether online or offline, any real estate investor can learn from good old books, newspapers, magazines, websites, platforms, mobile apps, real estate investment networks, other professionals, real estate classes, and so on. These resources are generally accessible to anyone, usually even free of charge. So, the availability of resources is just another reason for real estate investing being among the best ways to make money.
Related: 4 Must-Use Real Estate Investing Resources
8. Provides numerous tools to take advantage of
Similarly a real estate investor can make use of so many real estate investment tools including a rental property calculator like Mashvisor’s, online tools, mobile apps, etc. These would help find the best investment property, pay for it in the most cost-effective manner, manage it well, and sell it for a large profit when the right moment comes.
9. Can be worked from home
Real estate investing can be a full-time job which you work from an office or from the comfort of your home. Moreover, it can be a part-time job which you perform from your apartment or house. While a real estate investor has to visit properties, go to the bank, and manage his/her rental properties, this work on the go can be minimized through various means such as professional property management. Working from home is definitely one of the best ways to make money as it gives you more freedom and flexibility.
10. Offers tax deductions
Interest, depreciation, travel, repairs, supplies, association and condo fees, insurance, legal fees, and others – so many items in your real estate investing budget are tax deductible. This, on the other hand, means that you will save some good money from taxes, which is why real estate investments are the best ways to make money.
Related: Top Ten Traditional and Airbnb Rental Property Tax Deductions
Eventually everyone is looking for the best ways to make money – some find them, some don’t. Don’t make the mistake of missing this chance by ignoring the opportunities provided by the real estate investing business. Buy your property now to start your journey to becoming a successful real estate investor.