I have always rented: rooms, apartments, town houses, single family homes—the works. My parents have always rented too. They worked hard to provide for me, but I wish they had worked smarter.
Working smart is having assets that work for you.
Unless you have revenue generating assets, your income will always depend on the hours you punch on a time clock. Building wealth and financial stability is about diversifying your revenue streams. Diversification will provide you with an additional level of stability in the event that you’re laid off or suffer from a severe medical condition.
I’m young but I’m all about preparation. There are many reasons why investing in real estate can be advantageous. Here are 5 reasons why I became a real estate investor.
1. It is not rocket science.
Properties appreciate alongside inflation. The longer you own an investment, the more it is worth. As a notoriously indecisive person, I enjoy the options that appreciation provides. I can sell it for a profit down the road, or I can refinance and leverage the equity to continue investing.
2. I learn valuable skills.
Unlike undergraduate school where I spent thousands of dollars to learn things like existentialism, the skills I have learned during my time in real estate are functional. As long as people live in houses, there will always be a demand for carpenters, plumbers, painters, etc. If all else fails, I could make a living as a handy man—not to mention the money I save by doing repairs on my own.
3. I can increase the value of my investment.
Unlike stocks or bonds, a real estate investment is something that you can directly and immediately affect.Sweat equity can go a long way, increasing the property’s value and increasing its rent revenue potential. I enjoy the work too; so, it’s a win/win!
4. Cash flow is king.
The revenues generated from my rentals cover my mortgage—in addition to padding my pockets. Someone else is paying for my retirement! I’m able to save at a higher level than before too, which affords me some of life’s luxuries, as well as the ability to continue investing.
5. I can be proud.
The most rewarding part of being a real estate investor is the difference that you make in the community. It’s incredibly satisfying to see an abandoned property return to its former glory. I want to be a catalyst for systemic change, and real estate can afford me the opportunity. I also enjoy being a fair landlord to deserving tenants. Too many companies take advantage of tenants through crafty lease language—or by neglecting their duty to maintain the property. I know because I have been there.
I’m proud to be an investor.
So what are your reasons?
