Real estate investing is a much more superior investment than any stock or crypto currency. Real estate is more superior because it’s such a stable asset compared to the other investments. You can really scale it and multiply your money predictably and safely through real estate if you purchase the right real estate properties. It comes down to a few core components that are going to make you successful investing into real estate.
Component # 1
One of the components is the location. That’s one of the biggest pieces to creating a successful deal. No matter where you invest your money, if it’s not in a good location, it’s not going to multiply your money or appreciate over time. The location is critical. It’s one of the top things we look for when investing into real estate.
Component # 2
The second component is the demographics of the area and the type of renters we have at our properties. We want to have people who are working professionals and who are paying their rent on time. Those are two of the biggest components that make real estate really attractive to invest in. When you’re looking into good locations and a good class of renters, the pricing can sometimes be higher than other alternative real estate investments. For example, maybe you’re looking at a property that’s in a B location. A property in an A location is going to be a little bit more expensive, but it’s going to nearly guarantee success overtime investing into that asset.
That’s why it’s important to pick a good location because the rent is always going to continue increasing in strong markets. That’s something you always want to keep in mind and why real estate is a strong investment compared to stocks and crypto currency. The stock market is based on how a company performs and companies are always trending up and down depending on how sales are performing. Earnings, reports and crypto currencies are more of an emotional investment.
It’s hard to scale and multiply your money when you’re investing into those types of investments because you don’t really have an indicator of where or which direction that investment is going to go compared to real estate. If you’re in a good location and you have good renters, then it’s always going to steadily increase overtime. That’s why real estate is a much more superior investment than anything else you can put money into.
Real Estate Investing
There’s just nothing else that compares to investing into real estate. It’s something you can literally see the improvements that are made over time. When we invest into properties, we’re always looking to improve and renovate them. That’s what makes them increase in value. What we like the most about investing into real estate is that we have so much control over the investment. We can force it to appreciate and become more valuable overtime. Or we can collect rents and maintain that value and have a small incremental increase in values.
It’s really controllable unlike any of the other investments. You can put money into the property, reinvest it and skyrocket with the value of the property. You can’t put money into the stock market and force your money to grow. You’re at the mercy of your company and how well they’re performing. The moral of the story is you have so much more control over real estate than anything else you can put your money into.
Real Estate Is A Harder Investment
It’s not going to be easy though. Real estate is a harder investment to put your money into because it’s more hands on compared to just giving your money to somebody to invest it for you. It’s going to take a little bit more work investing into real estate but it’s worth it over time. There’s a ton of pieces that have to go into managing, purchasing, renovating, and leasing a property.
There are so many components investing into real estate but it’s worth figuring out the entire system so you can be successful. One of the properties we purchased was a seven unit townhouse building. We bought it for about $500,000 and then within a year we had it refinanced for $1.2 million. Once we renovated the property, we brought rents up from $700 a month to $1295. It was a huge success and that’s the same model we’ve continued deal after deal. We look for properties that haven’t been renovated, where there is that upside and where we can force appreciation. That’s how you can scale and multiply your money quickly with real estate.
What’s Next?
The next best thing you can do is go out and look for deals. Look in your hometown and take a drive and see what properties have signs out that have land for sale. Maybe there’s a property that you know that’s filled with apartments that you can reach out to the owner and see if they’re interested in selling. Look at loopnet.com. It’s a website full of listings that have apartments and land deals you can put together. Go out there, take action, find deals and put things together. The more you start underwriting deals and putting things together, the more success you’re going to have investing into real estate. You just have to take action now, and start putting the pieces together to start multiplying your money and investing into deals.
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