I found this story at http://www.entrepreneur.com/ by Brandon Turner that talks about some important advantages to Real Estate investing. I wanted to go over a couple of points I like about real estate investing.
#1 Cash flow this is an often used advantage as along as the cash flow happens. Getting a consistent cash flow is the key to the success in Real Estate. Good cash flow has a couple very important factors that every property you purchase must have. #1 Location Location Location a huge factor for two reasons. The first being the better the location the better the tenant selection. The second being the property management of your property. You need both to get the money you want monthly and build equity in your investment.
#2 Hedge against inflation is another prime reason to have investment real estate. Real estate prices are high in low inflation and great cash flow in high inflation. I remember in 1985 when I started purchasing real estate in the Phoenix area I bought condos for $15,000 that rented for $800 a month. That was because of inflation. In the 2000’s when inflation was in check I flipped real estate. That is what they mean a hedge against inflation. It protects you in all markets, remember people need a place to live.
#3 Control this is the one I like a lot! You can control your own property there is no other investment that you can do this with. Like they mention in this story you can rent your property or sale it. It really depends on the market. The key as I mentioned before is location of your property. In order to have control you need to have property in areas that have both high rental demand and high sales demand. That is very important. I have a property in an excellent area that I will probably sale in 2017. The prices are going up, I currently make a solid income on my cash flow.
Having the right real estate can do so much for you. That is what I do is find the gems in the areas that will benefit my clients the most. Call Brett 216-703-5740 Coldwell Banker and lets talk about your portfolio and how I can benefit it. We have a great new program that is buying in brand new areas that will benefit you in all markets.