Control Over Returns
I am personally much more confident when I have some sort of control over the outcome of my investment returns. This is my strength (and my weakness) as an entrepreneur! If you share that sentiment, then real estate is an attractive vehicle.
I control (directly ) picking a good property, borrowing from my Private Money Partners on good terms, finding good qualified buyers or tenants; maintaining the property, saving extra cash flow from rents, and eventually harvesting the equity.
Stock and bond investments are more passive, but that is also part of their weakness. All you can control is when to press the button to buy or sell. The rest is up to others.
Simple, Understandable, and Safe
One of my mentor’s primary rules is to purchase assets that are simple and understandable. Residential real estate, particularly houses and small multi units, is the most simple and understandable investment for me.
People like you and me live in rental units. Our needs are things like safety, convenience, comfort, affordability, style, and good school districts. You probably already intuitively understand the fundamentals of good real estate.
Real estate is also a “real” asset. It’s tangible. Housing doesn’t go out of style or get replaced by the latest technology. People will still be living in homes long after you and I are gone, and this makes it a safe long-term investment.
********************************* If you are reading my blog for the first time, let me inform you that… My company buys single-family houses and I write this blog weekly which is primarily directed to educate 1 group of individuals:
Individuals who are losing their shirt as a result of the “roller coaster” volatility of the stock market and low paying rate of other traditional investments, i.e. people that are looking for an opportunity that’ll provide a secured place to put their money to get it working for them to earn better than average returns.
However, often times, homeowners that need to sell their house, stop by to take a peek because they are curious and wondering how and/or where we get the funding to purchase houses. And if they stick around long enough, they begin to understand why individuals partner with us to provide the funding which empowers us to be able to purchase real estate on a continual basis. Simple, it’s because we teach them a secured way to earn better rates of return than they are currently earning.
So everybody wins. It’s a WIN-WIN-WIN !!!
Request your FREE Education Kit if you are interested in learning how passively investing in real estate may help place you in a better financial position.
Disclaimer: This site is intended for educational purposes only. I am not an accountant, attorney or licensed financial planner. While the information I’m writing here is based on many years of experience buying houses that doesn’t really constitute professional advice (since everyone’s experiences and situations are different).