Buying real estate can be a very profitable way to invest. The reason why is because land and properties can be valuable and a lucrative investment that steadily increases in value. Keep in mind, though, that investing in real estate does require capital and some industry knowledge to make the right property purchases.
Investment Property: Potential Returns
Some of the smartest folks in the financial industry love the historic returns provided by real estate and continue to recommend it for many investors. Take Dave Ramsey, for instance, one of America’s most trusted voices on business and investing. He does so because real estate investing has paid off handsomely for many investors. According to most sources, residential real estate has produced a return of over 10%. Commercial real estate is comparable, with typical returns over 9%.
A Recipe for Buying Real Estate Properties
Whether you are looking for property to flip, or are interested in long-term rental income, these are the steps to undertake to buy a quality investment property.
- First off, find your preferred real estate market
- Next, evaluate the property
- Finally, if you don’t have all the capital you need, arrange for property financing
Yes, these are the simple three steps. Many folks, however, do not have the expertise, time, or skill set to do one or more of these steps themselves. For many savvy real estate investors, partnering with a firm that is set up to enable your success in real estate is the preferred way to go.
There are many ways to earn good investment returns. Real estate is one of the best. The monthly cash flow that can be available to you is one of the best and stable returns you can earn. Finding a property priced at a real value can really enhance your investment.
