Becoming a real estate investor is an emotional and potentially very challenging endeavor. But if you are willing to put in the effort and keep an open mind, the opportunities are vast and there is a lot to appreciate about this investment choice. If you have been considering becoming a real estate investor, it is always a good time to seek out a great deal.
It is said that there is no totally passive form of income, and this is true. Absolute passivity would involve having no control over the type or source of income, which would eventually lead to its end. However, real estate investment is a powerful way to generate a degree of passivity. If you prefer not to work on the units or show the units, you can hire a property management company. While this does reduce the amount you take in each month, you can essentially hire people to build equity and put money in your pocket each month from the rents.
You have ultimate control over your real estate portfolio. You can choose where to invest, how much to invest and in what type of properties. Single family units, condos and multi-family units each have their own advantages and disadvantages, and you can compare these against one another. You have control over what you charge for rent, depending on what the market will bear, and you can often choose the best from a large pool of tenants. Ultimately, you are in control of your own destiny as an investor.
Ability to Profit in Most Any Market
The market for real estate goes up and down, but this isn’t the end of the story. When the prices of rental homes go downward, you can purchase more of them and grow your ultimate cash flow. When the prices rise, you can either choose to sell what you already own or invest in a different segment of the market. Ultimately, there are always going to be people who would prefer to rent instead of buy their home.
This has become even more commonplace in recent years. Much of society is very mobile, and many people would prefer to live in any given home for only a few years without putting in a down payment or being liable for any necessary repairs due to wear and tear. You can own the buildings these people rent and profit from this growing trend.
If your income all comes from your employer, the moment your employer decides that they no longer need you is the moment your income drops to nothing. When you invest in rental homes, however, your employer is no longer the sole provider of your income. This is a powerful state of being, and this grants you the ability to eventually live entirely off of the rents. While this can take many years, becoming independent this way has a great deal of historical precedent and a solid basis in reality.
As a real estate investor, you profit financially. But you also profit from the fact that you can make neighborhoods better and provide quality housing to people who need it. While this is not why many people get into real estate, one benefit of having happy tenants and knowing that your home may be the best that they have ever lived in is a good feeling.
Getting into real estate investing is not easy. But there are definitely rewards for the challenges involved.
