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4+ Reasons to Call Real Estate Investments “Smart”

By Posted in - Communities & community & MN Real Estate & Real Estate & Realtor Advice on November 22nd, 2016 0 Comments real estate, investment, property, buy a home, buy property, commercial property

When you see any title containing the words “Real Estate Investment,” you won’t be terribly surprised if the response turns out to be what a good idea! When you’ve had the experience of seeing clients succeed with many real estate investment projects, it’s an unavoidable conclusion. Unfortunately, also not looked at seriously by many.

That’s why I was pleased to come across Grant Cardone’s piece in Entrepreneur magazine. We all like to see our opinions agreed with—but doubly so when you’re offered specifics that bolster your own conclusions. The article listed reasons why real estate investments are “your smartest investment.” Here are just four of them:

  1. A real estate investment is a hedge on inflation. Inflation hasn’t been hugely important for a while, but serious investors have an eye out for the possibility. When you dig down, you find that real estate investments have “historically shown the highest correlation to inflation” of other major asset classes.
  2. Real estate investments enable positive cash flow. This was Entrepreneur’s number one reason. Having an investment which throws off cash while building equity at the same time is any smart investor’s ideal situation. When a real estate investment produces an income stream that is significantly higher than the typical stock dividend, what investor wouldn’t be interested?
  3. Leverage. A typical real estate investment makes it relatively easy “to place debt on the asset” because of its built-in collateral value. Entrepreneur offered some math to back up the way low-cost debt works to multiply a real estate investor’s power.
  4. Maximizing tax benefits. Taxes can be the bane of any investor—so real estate provisions that lighten the load can be significant factors influencing your bottom line.

Those are four of the solid advantages detailed in Cardone’s article.  One last advantage is less demonstrable but, just as real:

  • “Feeling the pride ownership” (no further explanation necessary).

For a list of all eight reasons listed and the full article, click here.

If you are an investor who is beginning to look over the year’s performance and thinking about how you want 2017 to look, I hope you’ll do two things.

First: take a serious look at whether a real estate investment might make a smart addition to your current portfolio.

Second: call us!

Cindy Hanson Welu is the team lead and listing/marketing specialist at the Welu Home Team.  She has been a full-time realtor for 16 years and her team consistently ranks one of the top teams in the state of MN.  The Welu Home Team with Keller Williams Realty Elite can be reached at 952-943-1324 or team@joeandcindy.com.

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