Whether you’re a finance newbie or a seasoned investment veteran, it’s always a good idea to revisit the reasons that real estate makes for a sound investment.
Between crypto, electric cars, and space travel, there’s no shortage of noise about the next big thing to invest in.
Sometimes, however, it’s better to go back to basics and think about the things that are always going to have high demand.
Let’s look at the eight reasons that make real estate a good investment.
1. Reliability
The first, and most important, reason to invest in real estate is that it’s a surefire investment. People are always going to need shelter, no matter how the market ebbs and flows.
You can develop your personal investment strategy by paying attention to consumer demand. Sometimes rentals are more in demand in an area where young professionals are getting started in their careers. Other areas may be seeing a boom in new homebuyers taking advantage of low interest rates.
No matter the scenario, you can be assured that real estate is both a reliable and flexible investment and that a team of experienced professionals will help you plan for success.
2. No Qualifying Requirements
When investing in a real estate fund, you don’t need to qualify for financing yourself. You’ll also get better opportunities for investment with a fund than if you were to invest as an individual. With a private fund, your investment will go further. You could be one of many other investors in one project. With a larger pool of capital, you could enjoy larger returns than you would be able to on your own.
3. Diversified Investment
Investing in real estate is a great way to diversify your portfolio. You probably already know about the importance of diversifying your investments. But for a short refresher, diversifying allows you to keep your money in different places.
The idea is that if something were to happen, like a global event (which is unfortunately not that difficult to imagine anymore) the different industries in which you’ve invested will ideally react differently so that you don’t lose everything all at once.
4. Stability
Speaking of diversifying, real estate offers more stable returns than the stock market. Many different things cause the market to fluctuate and it’s a lot less predictable than the housing market.
This is also why real estate is a great investment to supplement your retirement income. It’s a safer bet to rely on than leaving liquid assets or depending on a volatile market for returns.
5. Flexibility
As an investor, you can choose the types of property to invest in whether it be a residential turn-key home, a vacation condo, or a commercial property.
Marquee Funding Group offers loans in both the consumer and commercial marketplace, providing investors an array of choices, catered to their individual investment strategy.
6. Security
While the housing market is not impervious to inflation or other economic effects, it’s historically been a safe investment in most cycles of the economy. Even in a recession, real estate offers a way to preserve your capital in a tangible way. Any value lost in a downturn of the market is likely to rebound and do so more quickly than other assets.
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7. Hands-Off Investment
You don’t need to be an HG-TV devotee to be able to benefit from a good real estate deal. Acting as a silent investor allows the fixers and flippers of the world to use their skills to manage the project.
You won’t need to be anyone’s landlord or a do-it-yourself maintenance person. Backing the right project done by people who know how to renovate to sell or how to manage tenants will allow you to benefit without having to lift a hammer.
8. Marquee makes real estate investment easy
The first step of any successful real estate investment plan is to assemble a team of professionals. Marquee’s team has years of experience in real estate investing and wants to work with you on the best, common-sense deals.
Marquee Funding Groups protects its investors by offering the benefit of in-house origination and servicing, and securely documented and escrowed investments. All loans are sold “deal specific” in a particular loan and use piece of real property as security. And investors can typically expect a net annual yield of 8-12%.
Marquee wants to do long-term business with you, and building relationships with investors is a high priority. It results in mutual confidence and a smoother experience on all sides. Contact us today to get started. We look forward to working with you as you explore real estate investing.
Photo by Matthew LeJune on Unsplash
