Are you on the fence about investing in real estate? Whether you’re just getting started on your investment journey or you’re looking to diversify your portfolio, real estate is one of the best investments you can make! In this post we’re covering 7 reasons to start investing in real estate, now!
Cash Flow
In terms of real estate, cash flow is referred to as the profitable income received after operating expenses and mortgage payments have been deducted. With real estate, you have the ability to generate consistent cash flow by renting out your investment.
And the best part?
Cash flow is an additional benefit to owning real estate since you are also gaining equity over time, while paying down your mortgage. Short-term rentals are a great way to generate monthly cash flow.
Appreciation
Another attractive incentive to invest in real estate is that you have the ability to ‘force’ appreciation. To begin with, a good real estate investment will increase in value naturally, over time, by simply maintaining the property.
But if you want to accelerate the rate of appreciation, you can make repairs, renovations, and upgrades to your property. Not only will this force appreciation, but it will also allow you to raise rental rates, which in turn leads to higher cash flow.
It’s important to understand though, that not all repairs, renovations, and upgrades will increase a home’s value, so it’s best to always consult with a seasoned real estate agent first.
Tax Benefits
Investing in real estate opens the door for numerous tax breaks and deductions. As a landlord, in many cases, you can write off things like maintenance expenses, HOA fees, homeowner insurance, and interest paid on your mortgage loan, just to name a few. Always consult with your tax advisor for specifics to your situation and particular investment.
Leverage
Being able to leverage a larger investment with a fraction of the cost is a huge benefit, and one of the many reasons real estate is such an excellent investment. An example would be putting down just $10,000 to purchase a $100,000 property. Because real estate is a tangible asset, you are able to invest with less.
Diversity
Having options is a great advantage for investors. If owning a rental property with landlord responsibilities isn’t your cup of tea, there are a number of other ways you can invest in real estate; such as flipping homes, investing in REITs, connecting motivated sellers with a network of buyers, and more. Real estate allows you the option to explore, so you can find the type of investment that is right for you.
Additionally, if being a landlord deters you from investing in rental properties, you can hire a property management company to take care of everything for you.
Financial Security
Compared to other types of investments, real estate offers more financial security. With stocks, it’s not uncommon to lose your entire investment in the blink of an eye, as a result of a sudden market crash. Investing in real estate allows you to breathe a little easier knowing that your money is secured in an appreciating asset.
Real Estate is a Necessity
As the world’s population continues to grow, there will always be a perpetual need for real estate. People will always need a place to live, and businesses will always need a location to operate from, making real estate an in-demand asset.
Additionally, land that can generate income is a solid investment. Whether for retail, farming, or housing complexes, income-producing land will always be needed. Not only will your land appreciate in value over time, but you will also accrue equity and possibly monthly cash flow.
Experienced Real Estate Investors
To get the most out of your investment, it is important to consult with seasoned real estate professionals. At JNL Smart Realty, we offer a unique and comprehensive investing experience, tailored to your needs. We’re able to give our clients what large companies can’t- personalized, around-the-clock support throughout their entire investment journey.
If you’re ready to get started with real estate investing, give our office a call or fill out a contact form, here.
Feel free to contact us directly:
Phone – 678-975-0441
Email – Jerry@jnlsmartrealty.com
