Reasons to Start Investing in Real Estate Now

I am a real estate investor with 12 income producing properties. Here are the top four reasons to get started in real estate investing now.

If you ask any real estate investor when the best time is to start investing in real estate they will respond with ‘yesterday, but the second-best time is now!’ It seems like a flippant response, but there is validity to this statement. The longer you wait to start something, the more unlikely it becomes that you will eventually perform or act upon your intention. Also, real estate tends to appreciate, therefore it is always better to buy now versus in the future.

If you are watching the market, you are seeing a multitude of changes, which will in no doubt frighten a new investor. We honestly cannot predict what will unfold, but speculation will be prevalent everywhere you look for information. To get started you’ll have to listen to advice and make your own decisions on how and when to enter the world of real estate. Read on for my top five reasons of why to get started in real estate investing now.

Passive Income

Create a new income source by investing in real estate. Multi family investment (anything that is 2 or more units) typically provides $200 per month per door. While it doesn’t see like a ton of passive income, it is a start! The more doors you own, the more income you have.

There are other asset classes you can look at investing in if these numbers don’t excite you. Let’s talk Airbnb – book a consulting session now to learn about typical short term rental profits.

Asset Build

Build up your net worth by investing in real estate. This is a big one, as most people only have their vehicles and possibly their primary residence on their personal financial statement. Typically, these two items are leveraged in the early years, making it difficult to have a positive net worth.

With investing in real estate for passive income purposes you typically walk into the deal with equity (based on your financing scenarios and other factors). Therefore, you immediately increase your personal net worth upon your first acquisition, which in turn makes you look better for the next deal in the eyes of your lending partners.

Generational Wealth

Kick start and create your strategy around providing generational wealth to your family. This cannot be done by having earned income alone. The main way people create generational wealth without real estate is by saving conscientiously throughout the years. This can be difficult, especially towards end-of-life years.

Buying and holding real estate is a great way to have generational wealth to pass on to family. This could be created either through passing on the properties themselves or having a vehicle in which to pay taxes via an asset sale.

Appreciation Upside

As we’ve already discussed appreciation is key! The longer you hold real estate the more likely you are to build equity in your holdings. Equity can be used to do things like borrow against (to buy more real estate), or to create a gain upon disposition of the sale of the asset. This is a true wealth building step!