Real estate investing can be a great way to make passive income while also owning a piece of property. There are many homes that are affordable to first-time homebuyers, and with the right strategies, it can be a great way to make money without necessarily working at a company. Even though real estate investing is considered to be one of the least glamorous ways to make money, there are plenty of compelling reasons why you should invest in real estate.
Here, experienced real estate investor Rafi Toledano will share some of the top reasons you should invest in real estate.
Housing is an investment good for long-term growth
Investing in properties that are in good stead will appreciate over time, and will appreciate quickly when interest rates rise. Rafi Toledano suggests starting small and investing in assets that are easily accessible, you can potentially benefit greatly over time.
The best way to find homes that are in good stead is to start with public records. You can look at homes listed for sale and see how much they’re worth and where they are located. If the property is in a good place, it will be easy to find listings with low turnover and high inventory. If you’re not willing to put up a significant amount of money, you may want to look into private equity and hedge funds that invest in mortgage-backed securities. These types of investments provide predictable income but don’t have quite the same long-term potential as real estate investing.
Real estate investments can be a way to diversify portfolios
Real estate investments can be a great way to diversify a portfolio. Not only do you get to benefit from the diversification of multiple properties, but you also get to benefit from the diversification of multiple investment strategies. If you have a particular investment strategy that you think will work well in real estate, Rafi Toledano suggests trying out variations of that strategy in other real estate endeavors. This simple approach can allow you to get involved in a variety of different industries and still benefit from the real estate investment strategy. If you want to invest in a certain type of property, but don’t want to commit to buying properties in that neighborhood, you can always sell the investments and use the money from the sales to buy more real estate.
“This way, you get to keep benefiting from the investment strategy, but you don’t have to commit to buying properties in one location or another,” says Rafi Toledano.
Real estate investing can increase your personal income
We mentioned earlier that real estate investing can increase your personal income. If you have a particular investment strategy that you think will work well in real estate, Rafi Toledano recommends trying out variations of that strategy in other real estate endeavors. This simple approach can allow you to get involved in a variety of different industries and still benefit from the real estate investment strategy.
Why You Should Invest in Real Estate
If you’re serious about wanting to make money in real estate, it’s important to do your research and find properties that have good investment prospects. There are many successful real estate investors, such as Rafi Toledano, owner of Brookhill Properties, who started out as hobbyists and have now turned themselves into multi-millionaire real estate investors. Investing in real estate is something you can do long-term, and it doesn’t require a great deal of effort.