For a certain type of investor, real estate is a satisfying option. If you’re looking for reasons to begin investing in the real estate market, we’ll outline the major advantages here.
Real Estate Investing Benefits
- Stability: Real estate investing can provide a less volatile investment opportunity than the stock market.
- Active management opportunities: RE investment can be a good option for investors that enjoy an active, hands-on role. If you’d rather work on your own investment growth strategy and don’t care for investment accounts managed by others, real estate investment could be for you.
- Investing options: Some investors have done well with residential and/or commercial real estate development, while others prefer owning multiple rental properties. In rentals, you could concentrate on single-family homes or multi-family properties, or a combination. Some investors get into real estate investing via house-flipping.
- Diversification: Investing in rentals can diversify your portfolio while also bringing reliable income. (Keep in mind there are no guarantees of steady income or profits from any type of investment.)
- Costs are incremental: You can profit from real estate investment while you are paying for it. You don’t need to wait until you own it outright to make money.
- Profit from economies of scale: For example, in multi-family rental investing, you can add properties to your portfolio with a relatively small additional cost to you. You can spread the cost of property management over multiple properties.
- Delegate daily management with minimal cost to you: You can afford a property manager to handle details like collecting rents, screening or evicting tenants, coordinating repairs, and more. Once you have a few properties in your real estate investment portfolio, the cost of the manager won’t significantly cut into your profits–since you typically pay a small percentage of rents “per door”–but it will save you valuable time.
Learn about your options for funding real estate investing. Contact Commercial Capital Finance today!