6 Reasons To Invest In Real Estate

We may be biased, but for us, real estate investing has been an amazing journey. Like anything worth doing, it has its challenges, but the potential far outweighs the drawbacks. For the right type of person, real estate investing can open doors, create financial independence, and bring a sense of satisfaction that can be difficult to find in an office job. If you have thought about getting started, but you weren’t sure if it’s for you, look at these reasons to invest in real estate.

1. Low Barrier to Entry

Many new investors are drawn to this field because it is so easy to get started. Unlike other career fields, there are no licensing requirements. No exams you need to prepare for. No continuing education to worry about. Someone who is just getting started has the same access to property inventory as someone who has been doing this for years. The only thing holding you back is you.

Even the financial barriers are fairly low, considering you can finance your purchase. With some cash on hand to meet the requirements set by the lenders and some extra capital for repair work, you can be well on your way toward a new career. This is just one of our reasons to invest in real estate.

2. Control Your Schedule

For those who have spent time punching a clock and working a schedule that was created for them, the thought of working without a set schedule usually sounds too good to be true. But with property investing, your career is what you make it. Granted, most of us do not just work a few hours here and there, but when you are your own boss, you can work hard and still make it to the kids’ sporting and school events, or go on a vacation occasionally, without worrying about how many days off you have left. Property investors enjoy the luxury of breaking out of the daily routine.

3. No Office Constraints

Along with the freedom of a flexible schedule, property investors enjoy leaving behind the constraints of an office job. While steady employment for a large corporation has its perks—constant salary, health benefits—it also has drawbacks, like office politics, monotony, and lack of excitement about what you are doing. With property investing, you can leave that behind and control your own destiny. This can be just as scary as it is exciting, but for us, it has proven to be the better path.

4. Unlimited Income Potential

Another one of our reasons to invest in real estate is that there is no limit on what you can do with it. Some investors focus on a few deals per year and work with a small team. Others cast a wider net and have multiple projects going at once. With hard work and good decision-making, you can find financial success. That’s not to say there isn’t risk involved—just because there are no limits doesn’t mean this world comes with guarantees. Quite the contrary, in fact. It’s not hard to find examples of deals gone wrong and not every rehab will result in a hefty profit. Sometimes you may lose money. But when you understand how this industry works, and you get a sense of individual markets, you can be incredibly successful.

5. High Returns on Your Investment

No matter what type of investing you do, you always have to balance risk and reward. Typically, we think of the saying, “no risk, no reward.” While this is true, property investing has the potential to break out of the usual sliding scale of potential return on investment. What sets property investing apart is its potential to generate a substantial reward from a fairly modest risk. To set yourself up for success:

• Research local and national market trends
• Secure rehab bids from reputable, trusted contractors
• Create a realistic timeframe for completing the work
• Factor in holding costs that accrue while the rehab work is being completed

With solid research and good numbers, you can be reasonably sure your investment will turn a profit. This is one of our favorite reasons to invest in real estate.

6. Passive Income

When we think about setting ourselves up for long-term income streams, we often talk in terms of passive income—revenue that keeps rolling in even if we aren’t actively working on a particular project. With property investing, you can generate passive income by rehabbing properties and leasing them, rather than selling them. While selling is a faster way to generate income, if you build a portfolio of rental properties, you can keep the money coming in every month with little physical effort. A high-performing rental asset also continues to appreciate in value. Down the road, if you want to sell the property, you can do so and profit from its increased value.

The property investing world is complex, exciting, and financially rewarding. Maybe you have been thinking about getting started, but you aren’t quite sure how. Keep reading our blogs for tips, advice, and insight into what this career can do. There are a lot of ways to make money, but with property investing, you can control your own schedule, work at your comfort level, and build multiple channels of revenue. These are just a few of the reasons to invest in real estate. New careers are never without their challenges. But property investing is a great option for nearly anyone who is looking for more freedom and control over their lives.