3 Reasons Experienced Investors Love Putting Their Money in Real Estate

by Larry Alton

Real estate is a great investment, as evidenced by the trillions of dollars poured into the market each year. The rewards aren’t as easily liquidated as other investment options, but it’s a huge commodity when diversifying your portfolio.

It gives you something you can hold onto in a steadier market and helps amateurs get a feel for investments in general. The pro investors of our day often recommend diversifying with real estate for those very reasons.

3 Reasons Experienced Investors Love Putting Their Money in Real Estate

1. Real estate is great for diversification.

Diversifying your portfolio is a standard of good investing; it limits exposure to a single asset. That way, there’s a better balance of risks and rewards and a higher guarantee that you’ll make money instead of losing it.

“Don’t plunge your life savings into a hot tech stock,” explains a white paper from Realty Mogul. “That links your entire financial fortune to a single stock’s performance. The rewards may be huge. But so is the risk. Kind of like going to Vegas and betting it all on black.”

The real estate market is steadily improving; we’re miles away from where we were almost 10 years ago when the market burst and millions were left scrambling to pick up the pieces. Investors everywhere are reaping the rewards of purchasing a property now and having the value increase significantly in the years to come.

2. Real estate can involve high returns and low risk.

Michael Berry, a CPA based out of Seattle, says he believes real estate is one of the best corners on the market for high returns on investment.

“I used to have people say, ‘I need a 6 percent yield on my investments to retire,’” he said in an interview with CNBC. “I don’t know where you’re going to find it these days, except in real estate.”

Berry puts so much stock in real estate, in part, because of its low-risk/high return infrastructure. It’s a great medium for diversification because, although the rewards aren’t as easily liquidated, it’s still a safer bet for returns than something like a trendy tech market or penny stocks.

It’s important to recognize that real estate is not without its risks, as evidenced by the housing bubble that contributed to the financial crisis of 2008.

“It is really hard to spot bubbles with any confidence before they burst,” Minneapolis Fed President Neel Kashkari writes in a Business Insider article.“Everyone can recognize a bubble after it bursts, and then many people convince themselves that they saw it on the way up.”

However, those who are intelligently invested in the real estate world will follow the market and watch closely for signs of a burst. Although no one can predict the day or even the month that a crash will happen, there are some indicators that can make you wary.

Additionally, there are a number of low-risk strategies for investing in real estate. Going into it with a thorough understanding of the market, a plan to generate cash flow, conventional financing, and a reasonable chance of appreciation can significantly diminish the risks facing your real estate investment.


3. Real estate offers easy entry.

Another reason the pros tend to reach for real estate when investing is the ease of entry. Most people can qualify for and purchase a house, and if they’re economically minded, they can easily milk the property for all the cash flow it’s worth.

There are dozens of ways to invest in real estate, including flipping houses, REITs, rental properties, commercial rental properties, or simply purchasing a property in a rapidly appreciating market.

Now, it’s true that real estate is an easy niche to enter, but that doesn’t mean it’s always easy to make money with the investment. In fact, investing in something like futures can actually be a simpler process, although it seems more daunting.

Still, buying and selling houses is something that more people do more often. Investing in stocks and bonds takes more knowledge of the stock market and economic matters. While you do need an understanding of economic factors, people often feel more comfortable entering real estate than other investment sectors.

Real estate makes a great diversification factor to your portfolio. If you’ve been through the home-buying process before, you’ve learned from your past mistakes, and you feel like you can understand and navigate this more familiar market. It won’t always be easy to find success, but it is a simple port of entry for your investment diversification.

Amateur and professional investors alike will continually point out the benefits of real estate investing, but you’ll have to experience it for yourself to know if it’s a great diversification factor for your portfolio.

Why do you choose real estate over other investments?

Interested in Finding out More? Reach out below

Shawn Ireland

Phone: 913-225-6231

Email: Ireland_Investments@yahoo.com

Address: 1415 Main St. #823, Grandview, MO 64030

Website: www.irelandinvestmentsllc.com/

Facebook: @IrelandInvestmentsLLC/

Instagram: @irelandinvestmentsllc

Twitter: @IrelandLlc

Ireland Investments llc

This information is intended only for the use of the intended recipient(s) and it may be privileged and confidential. Please note that any views or opinions presented in this post are solely those of the author and do not necessarily represent those of the company. This is reposted information and is not original thought of Ireland Investments or anyone associated with the business.

Popular areas we service;

Crossroads Real estate, 18th and vine Real estate, Hospital Hill real estate, library district real estate, longfellow real estate, dutch hill real estate, quality hill real estate, river market real estate union hill real estate, Greater downtown KCMO real estate, East Side KCMO real estate, Midtown KCMO real estate, Westport Real estate, Hyde Park real estate, Northeast KCMO real estate, Northland real estate, Plaza Real estate, South Kansas City Real estate, Fairway Kansas real estate, Kansas city Kansas real estate, lake quivira Kansas real estate, Lenexa Kansas real estate, Mission hills Kansas real estate, overland park Kansas real estate, prairie village Kansas real estate, Shawnee Kansas real estate, weatherby lake Missouri real estate, westwood Kansas real estate

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Website Built with WordPress.com.

Up ↑

%d bloggers like this: