I Love Real Estate!
There are so many things to love about real estate and real estate investing. One acronym used to describe the benefits of real estate is that it is the I.D.E.A.L. Investment. Your receive Income. You get the benefits of Depreciation which lowers your tax bill. You create and grow Equity by purchasing below market value, and/or increasing market value, and in paying down loan principal. Property values Appreciate. You can utilize Leverage. While each of these benefits is compelling, there are numerous other benefits that – in my mind – make real estate the ideal investment. A few of my favorites include:
Creativity – you can be creative in the use, design, or investment. Some examples include… updating an old warehouse into cool lofts, converting unused spaces into amenities or even additional rentable space, or even structuring deals to meet different investment goals.
It is tangible. If you lose money on a stock, bond, or other vehicle, all you have is lost money. If you lose on real estate, you can go out and hit or kick your investment. Better yet, you can actually go out and do something else with it.
Everything is negotiable. Between any of the parties – landlord, owner, tenant, resident, bank, manager, etc. – everything is negotiable. You can structure an agreement to meet any goals as long as all the parties agree. For example – one agreement I entered into on an apartment property had a requirement to feed the stray cats on the property.
Improving communities. Perhaps the most rewarding characteristic of real estate investing, at least for me, is taking mismanaged and run down apartments, investing the capital needed to fix the property up and provide a great place to live. This is a benefit to the residents as well as the cities/communities where they are located.
We create value. By improving communities, we actually increase the value of those properties. The increase in value is passed on to our investor/partners. This creates wealth and passive income for those who partnered with us.
Win – Win – Win. Our investment approach is a winning proposition for everyone involved. The residents love having a nice, well cared for, and caring ownership and management team. The cities appreciate having an owner that maintains their property and takes care of the residents. Our investor / partners love creating wealth and passive income while actually providing a quality product.
I love real estate! I am so thankful that I have the opportunity to impact so many people in so many positive ways!