Question:

Is real estate the best investment?

My wife and I have $72,000 to invest. We are considering purchasing an apartment complex with 2 to 4 units. In general is real estate the best long term invesment or are there better options? A friend of our suggested being a hard money loan lenders (to earn about 10 % a month. We thought that was careless since the principal loan agent could take off with our money at anytime. Thanks for the help.

Answer:

Real estate is a great investment option. It can generate an ongoing income source. It can also rise in value overtime and prove a good investment in the cash value of the home or land that you buy. YOu may use it as a part of your overall strategy to begin building wealth. However, you need to be sure that you are ready to begin investing in real estate. Many advisors warn against borrowing money to purchase investments. You should consider this before you purchase a home that you plan on renting out. The best way to do this is to save up and pay cash for the home. At the very least, you need to be able to afford the payments on the property when the property is vacant, otherwise the property may end up being a burden instead of helping to build wealth. YOu should never just rely on the rent covering your mortgage. You will have turn overs in renters, and some may not pay on time. Your credit would be damaged if you did this. It can also take years for the profit to turn profitably instead of just breaking even if you use a loan to purchase the property. When purchasing real estate as an investment, you need to consider the cost of taxes and the way that you plan on renting it out. Often it is easy to go through a rental company and contract through them for repairs and rent collection. This takes away part of the burden of caring for your property, but it will also cost you money. When you are the landlord, you are responsible when things go wrong. A rental agency acts at the middle man and schedules repairs and deals with the tenants for you. If you do not have time to do everything your property needs done, using an agency is a good option. ......Real Estate Agent Bendigo
1. Property does well. It might not always be the best. In some areas property has not done well for a long time while other areas have seen very high returns. 2. Hard money lending means lending secured by real estate. Hence the person who borrows can not just skip town. Well, they can but the security for the loan is still there. Lots of ways a deal can go bad but what you were expecting is not really one of them. 3. The returns a hard money lender will make are not 10% a month. Closer to 15% a year if they keep the money working all year plus maybe some points. In some states the rate is lower or it is illegal to collect points. The laws vary by state. Coming back to your question. With the amount you have and the property you are suggesting it could be a good deal. There are many details so it is hard to tell. What I can tell is you are not in a very high priced area as you would not be able to buy with only $72K. In other areas that will buy you a single family home with no mortgage (all cash). I suggest you do some more reading. Real estate investing is not for everyone. You can do very well but you have to learn how the market works and what it means to be a landlord (even if you outsource to a property management company). See the link below.
Yes Real Estate is the best choice for Investment. To earn more money than what we invest the only option is real estate investment. Plan yourself in investing and start your career. Learn the techniques and tips that are necessary to become a successful investor. It is made simple and easy with experienced staffs and real estate mentors. The only place which provides better coaching in real estate investing is Creative Success Alliance. CSA is a team of expertise in real estate investing who provide the better ideas and techniques which makes it happen. Try it and win it in Real Estate Investing. Good luck become a profitable investor.
In my and most opnions, yes. But you first need to ask what determines The Best, is it highest return, safest investment, lowest risk, quickest return. Because the best investment might be $72,000 at a roulette table on red, It will be doubled money in seconds, but comes with a big risk, Apartments might come with a lot of headache and a mild return but a great retirement plan. And stocks can be very risky but sometimes have great returns, and on the other hand mutual funds are safer but with lower returns. So you need to figuring out how long you will keep this investment and how risky you can afford to be, but over time, statistically real estate has shown to be the overall best, not always the quickest or highest return, and sometimes risky, but low risk and good return over time. Which I think has more to offer than any other form of invesment.

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