Investing in real estate is not an easy task and therefore has some inherent risks. However, compared to investing in just about anything else, real estate carries relatively low risk for the simple reason that you can control most elements of a real estate investment. For example, you have full control over where you invest (areas with measurable growth rates consistently higher than other areas. When to buy, what to buy, and from which lenders you get your financing. Similarly, you can control which tenants rent your property for , whether or not to make improvements to the property, and when (if ever!) you want to sell. Also, real estate is relatively easy to learn (no three-year college course required), easy to practice (you don’t need to be certified in any way as a prerequisite to investing in real estate), and easy to care for (hire a property manager)
Perhaps most important from an investment point of view is that it is relatively easy to make a large amount of money investing in real estate, made all the more attractive by the reality that you don’t have to have a lot of capital to do so. To be sure, there are plenty of people who make obscene amounts of money from things like stocks (consider Warren Buffet), currency (George Soros), high-tech (Bill Gates), cars (Henry Ford), fashion (Ralph Lauren). and in a multitude of other initiatives. However, our opinion is that if you take groups of 1000 people, all chosen at random, and train one group to invest in stocks, the next in cars, the next group to invest in currencies, the next in high-tech. , the next in cars, the next in fashion and so on, and it also takes a group of 1,000 people and trains them to invest in real estate, then after ten years, real estate investors, on average, will have greatly outperformed measure to all other investors.
Not only will the average return for real estate investors be much higher, but the standard deviation in return will be much lower, meaning the numbers will not be skewed by one or two hyper-success stories that drive the average but leave to the masses. to the wills of chance.
The few dangers that exist when it comes to investing in real estate are for the most part easy to overcome. This is because by making smart decisions regarding real estate agents, property acquisitions, property management, accounting, tenant selection, and general attitude, it is easy to minimize your chances of making money on a scale that few other investments do. they can pay.
