There are a lot of ways to build wealth. When people say that there is only one way to do it, I automatically want to push back against it.
Of all the ways to build wealth, it’s hard to argue against how many great options there are with real estate. It’s provides soooo many awesome ways to build wealth.
When you read and meet different millionaires, it’s undeniable to see that many of them are involved in real estate in some way.
I’m going to focus mostly from the stand point of Buy and Hold single family houses. But there are so many other ways to invest in real estate. Here are 5 reasons that Real Estate is a great investment.
- It can help your present financial situation.
While real estate many times requires patience, the interesting thing about real estate is that if you have cash, it is an investment that can bring returns quickly. If you do wholesaling or buy and hold; it provides opportunities to make money pretty quickly off of your money depending on the investment.
As well, you can literally find a home for pennies, refer someone and collect a referral from the owner if they just want to get rid of it.
There are a lot of options to make money in real estate. It’s such a broad topic.
2. It can help your future. (Become your retirement)
One thing that is pretty amazing about real estate over the stock market is that investments like the stock market will be beneficial most of the time years down the road. Real Estate can begin making you money soon and keep making you money as you retire.
If you follow the system that John Schaub details in his book, “Building Wealth One House At A Time”, you’ll see that each home can become a cash cow for you. You figure out how many cash cows you need and you can potentially live off of those cash cows through your retirement.
3. It provides many tax advantages.
I was listening to a podcast and one of the host made a really good point. He said that lawmakers, wealthy people in any and all financial situations usually have some form of real estate. And because of that, you see the advantages that owners of real estate have through taxes.
The tax advantages are broad. There is a large range of them. Check out this article and this article for some really thorough lists.
4. It can ride well during recessions and up/down markets.
Recessions can come in many forms. We saw that in 2001, 2008 and again in 2020. They are hard to predict. That’s why it’s extremely important to make sure that you are not over leveraged. I am a big fan of having plenty of cash at all times and having as little (business) debt as possible.
Real Estate can ride well during a recession. When the market goes up and down, if you have 20 paid off houses, you’re fine.
As well, many people spend a lot of time hating on Section 8 but I’m a big fan of Section 8. One thing we’ve seen through the past 3 recessions is that Section 8 properties always do pretty well during recessions. The government pays their checks during recessions.
5. It empowers you to control your income.
Real Estate provides an avenue for you to make money in a way that you are independent and don’t have to be owned by a company. You can have freedom. You can have forms of income that aren’t going to be affected by others. And when you learn how to purchase real estate, you’re able to control your income and purchase more and more. Meaning you can increase your own income. Give yourself a raise!
6. You can own your life.
You can live your life on your terms. If you own enough real estate, it’ll pay you and work for you.
That’s a dream for many people. To be able to vacation as much as you’d like. While it’s not always easy and not completely passive as some would think, it’s such a good investment because anyone that owns enough real estate can decide to retire for however long they need to. Or they can work for however long they need to.
No more running the rat race. No more having to be a victim of your circumstances.
7. It doesn’t discriminate with race, gender, education or background.
This may be my favorite thing about real estate.
No matter your education. No matter your background. No matter your gender. No matter your race.
If you own real estate and if you want to build wealth with it, there is nothing that can stop it. That’s a very encouraging thing. It’s encouraging in a racist, sexist world that discriminates against people over any and everything. If you want to be a landlord and want to help people in a rough situation, you have the power to do what you think is right.
Real Estate is an amazing way to invest your money for these and MANY other reasons.