Real Estate Investing
Real Estate investing really is the king of wealth building! My husband and I have invested in stocks, bonds, mutual funds, peer to peer lending, and even alternative currency (Bitcoins, Doge Coins, Lite Coins, etc.) We are open to all ways of bringing in income and creating wealth.
"Why Real Estate?"
After doing so much research and hypothetical math, we finally took the leap and purchased a cash flowing multi-family building, and I couldn't be happier! Unlike the other asset classes, real estate is the ONLY category where you can borrow large amounts of cheap money to invest. Leverage! As long as you are conservative with your leverage, I think it's a great tool to maximize wealth creation.
In addition to that, you have monthly income and tenants paying down your principal. I feel it's a win-win. Also, as long as you are not an irresponsible landlord (a.k.a. slumlord), you are providing a valuable service to people. They have a safe, clean place to live at an affordable price, while you make a profit. You don't have to scam anyone to make a buck. It can be a very ethical business for those morally inclined.
Real Estate is a great investment because people always need a place to live. That is something that never goes away, despite recessions, down times, depressions, or any horrible economic issue. There is nothing more satisfying than the first of the month, when our monthly check rolls into the bank account! That feeling of knowing that we made a sound, safe, and stable investment that we will be reaping the benefits of for many years to come is priceless.
"I don't want to fix leaky toilets."
And you won't! I hear excuses from people all the time about why they do not think real estate is a good investment. They are just that ---excuses. Although there are many horror stories or rentals gone wrong, that is the exception, not the norm. The majority of people pay their rent on time and don't want to bother their landlords (or themselves be bothered).
Think about when you were renting. How often did you talk to your landlord? I rented in three locations before I bought my first home. All three locations, I barely ever spoke or even talked to my landlord. On a few occasions, I had some things that needed repairs, but I didn't even call my landlord. I just fixed it myself! Troubled tenants that flood toilets, break windows, and vandalize property do exist, but they are not the norm. I truly believe we should be prepared for the worst, with good insurance and tenant screening,but in the end, most people are not trouble makers.
I believe many tenant horror stories are either exaggerations, told by people who are too scared to actually invest in real estate and making up excuses, or from bad landlords who don't really know what they are doing. I would put the excuses aside, and really look into investing in real estate to secure your family's future.