Have you ever thought about investing in real estate? Whether this is something you’ve been ruminating on for some time or something you’ve only just started to consider, it could be a good move for your financial future.
I may not be a professional financial advisor, but I do have quite a bit of experience in the realm of real estate investing. Therefore, I’d like to share a few points I’ve learned through this experience so that you can more clearly understand the difference between investing in stocks and investing in real estate.
First, take the claim that stocks are easier to invest in with a grain of salt. While investing in stocks does require a lower front-end investment (both in terms of money and energy), real estate investing is often more rewarding in the long run. Allow me to share an example from my own time as an investor.
A while back, I got a call from a wholesaler who was looking to sell me a Jacksonville, Florida property for just $30,000. This wholesaler had bought the property for about $24,000 and was willing to pass it on to me for just a few thousand dollars more. Better yet, the property had previously earned a positive cash flow of about $550 per month. I, of course, proceeded with the purchase, and have been reaping the benefits of this investment ever since. In the end, everyone walked away with a great deal. The wholesaler got $6,000 from a property they hadn’t invested any money in (beyond the initial purchase price), and I got an affordable, profitable new investment.
This just goes to show how many ways there are to earn money through real estate investing. You can act as a wholesaler, fix and flip properties, or even buy properties to use as rentals. The list goes on.
As for the property I mentioned in this story, it’s only been four years and I’ve already earned back the majority of my initial investment, all while getting a positive cash flow of about $650 each month.
But what about that initial investment? If the idea of paying a few thousand dollars to secure an investment property still gives you pause, consider this: There is nothing you can do to change or improve the stock market. It’s totally up to chance. With real estate investing, you can easily find affordable properties that will turn a profit all while, essentially, paying for themselves.
Another benefit of real estate investing is that you can leverage the profits from one property to help pay for another. Personally speaking, this strategy once allowed me to buy a property for just $8,000 down, only to later earn a $187,000 profit from that same investment.
The bottom line is that real estate investing is a more active endeavor than investing in stocks, but it’s much more likely to bring you positive results.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.