5 Reasons to Invest in Real Estate

If the money tree in your backyard hasn’t started sprouting yet, or the guy who picks the PowerBall numbers twice a week refuses to call yours, this is the post for you. There are other ways to make money and diversify your portfolio. Many entrepreneurs say investing in real estate is a way to build wealth in the long run. Here are five reasons to give it a try.

1. It’s easy to get started. (Relatively speaking.) But don’t think that investing in real estate is going to be a cakewalk. You have to do your homework before, during, and after the investment. Unlike investing in the market, learning how real estate works is pretty easy to understand, but there is work involved in the endeavor.
2. Investing in real estate is pretty safe. Cash flow from a real estate is more stable and predictable than most other investments. Once monthly expenses are taken care of, extra money coming in can be used for whatever your needs may be. Chances are the initial investment made as well as improvements along the way will cause the property to appreciate. This will secure that cash flow over time.
3. There are tax benefits involved. The money coming in from rental property is not subject to self-employment tax. Also, most of the time the property owner can claim the interest portion of the monthly mortgage payment as a tax deduction.
4. The investor controls their own destiny. Money isn’t tied up in a corporation where a board of directors dictates how it’s spent. Your success is dependent on how hard you’re willing to work and hustle. One real estate investment often leads to another. As the property owner, you’ll have the final say in everything that happens to that investment.
5. It’s a buyer’s market here in southern Illinois. The state budget crisis in Springfield has many people uncertain about their own future. Job layoffs are happening as programs get cut. That’s forcing some families to sell their property and leave or seek alternative housing. This can work to the investor’s advantage in picking up a deal. But be aware of the area you’re investing and know the rental rates. Be competitive and don’t drive away potential clients.

The process of investing in real estate isn’t overcomplicated, but there are questions that will likely come up. If you need information on what’s right for you, let us know. Call (618) 988-0659 or email us.