“There’s a reason why almost every billionaire you can think of is associated with real estate investments”
by: Icel Dy
As the highly competitive business ecosystem demands, entrepreneurs should always be keen on finding and maximizing opportunities for growth and income-generation. And when looking at the profiles of millionaires and billionaires, aside from having flourishing businesses, they all have one thing in common — real estate investments.
“The real estate asset class is one of the most beloved investment vehicles of all time, thanks to our common belief that — no matter what happens with our crazy world — people will still need a place on Earth to live and work,” writes Peter Kozodoy in his Inc.com article.
With that in mind, as entrepreneurs get on the grind towards scaling and innovating their businesses, a real estate investment portfolio would greatly help them acquire an additional source of income — a stable and passive one.
Are you an entrepreneur looking for more ways to maximize your income? Here’s why you should dive into real estate investing.
1. You can get better returns
Real estate gives you more control of your investment because it is a tangible asset. You can leverage income through various means like rental income and value appreciation. As the market improves, the value of your real estate increases. You can also opt to add value to it by doing strategic renovations. Aside from these, some real estate investors explore the method of flipping real property (buying and selling real property for a short period of time) to gain a quick income.
“Real estate is one of the few investment vehicles where using the bank’s money couldn’t be easier. The ability to make a down payment, leverage your capital, and thus increase your overall return on investment is incredible,” writes Atty. Mark J. Kohler in his Entrepreneur column.
2. You can secure your retirement funds
Because real estate investments are a good source of stable, passive income (especially those that give rental income), you’re in for a financially stable future. As an entrepreneur, it is a wise move to invest some of your business profits to real property because this can secure a steady income flow in the future, in addition to your continuously growing business.
This couldn’t be any truer as Rahul Varshneya writes in his Inc. article, “Gone are the days of stability — where you could spend 40 years working for the same company and retire comfortably. Nowadays, people are looking for alternative means for generating wealth and financial security.”
3. You can have a tangible asset to pass down to your family’s next generation
Because real property is stable, tangible, and guarantees better investment returns through time, it is one of the strongest assets you can pass down to your family’s next generation. It is something that can be a significant source of income not only for you but your future generations as well. Just think of the rich families owning real estate investments throughout the country. Exciting isn’t it? As an entrepreneur, real estate investments should be part of the goals for your family, aside from your existing business.
Some key tips
Take your time
Start-up entrepreneur AJ Agrawal shares, “It is important to take your time, both when you’re buying and when you’re selling. Do not buy the first property you like, look around and compare all the options that you have. However, also remember that there is no such thing as a ‘perfect deal,’ especially when you are selling the property.”
Go to a trusted, experienced real estate manager
Writes Kozodoy, “Investments lose money. Companies go bankrupt. Vet your investment options carefully to make sure you’re choosing an experienced real estate manager that fits your risk profile. Plus, there are other signs you can look for that indicate your hard-earned money will be well taken care of.”
ICEL DY is the Vice President of Spectrum Investments, a property portfolio management company. Her background in real estate stemmed from 10 years ago as a property specialist for Ayala Land. She used to live in a house, but has recently been fascinated about small spaces and now live in a tiny home. For questions, you may reach her at firstname.lastname@example.org, or get property updates from www.spectrumproperties.net