Real estate is evidently one of the best and safest ways to grow your finances as a new real estate investor. Any real estate investor who is looking for some supplementary income should definitely look at the industry as a great opportunity to flourish and achieve financial freedom.
A new real estate investor can be challenged at making a decision between different investment options for example stocks, bonds, mutual funds and real estate. At least these are the most common that get new real estate investors divided between roads.
Jeff Adams, a real estate expert in the US knows and wants to teach his students the characteristics of a good investment opportunity. He enlists a good opportunity as one that:
Gives a solid return on investments, passively.
The rate of income should be a steady one and predictable enough for you to get yourself into.
Has low risk.
A clever real estate investor starts small, spreading their investments thereby lowering the overall risk involved. This is also a good way to maximize returns.
Is secure.
You would not want to place a bet where you have no guarantee. With the rising rate of crooks, one eye should focus on good deals and the other should be used to spot fake or illegal ones.
Why is the Return on Investments (ROI) better in Real Estate than in any other popular investment option?
Let us compare real estate to the stock market. The stock market is a good way to invest your finances, but not the best for beginners. The returns are never stable and you never know where the prices will be headed next. Companies go bankrupt and it is a reality, unfortunately.
Accounting scandals, oil price fears and plain greed cannot let the stock market breathe.
The real estate investor becomes a victim in the whole equation. You have no cash flow or even worse, your stocks reduce in value and the situation doesn’t change for months or even years. The risks are much higher, which cancels out the huge returns.
Real Estate is the right way to go…
Real estate is a safer and smarter way to invest and grow financially. The best strategy that one can implement here is the long term plan of ‘buy and hold’. You can adapt this plan by studying the real estate market cycle in your area of interest. Buy low and sell high to make long term returns but with less risks and more safety.
The best thing about dormant property is that it appreciates in value unlike the roller coaster involved in the stock market. Smaller capital is needed to invest in real estate compared to stocks. In real estate, new real estate investors with limited financing are advised to stay away from property management. As a new real estate investor, strive for simplicity, you have to avoid complicated situation like being a landlord without any experience in real estate.
The secret is to start small, have a clear exit strategy and be gradual in physical growth.
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