Any investing genius you ask will tell you about the power of real estate investing and how it can be unmatched compared to other investment classes like stocks. If done correctly, you’re returns can dwarf anything else you can invest in. However, if done incorrectly it can cost you greatly. But then again, what’s a downside without and upside, right?
The first things you want to know about real estate as an asset class to invest in is that there is a higher barrier to entry to get in the game, the majority of investments you make that have potential for great returns are going to involve you having to outlay hundreds of thousands if not millions to start investing as well as use leverage to increase your rate of return per unit of capital invested. The second is, real estate compared to stocks also has a lower turnover rate, which is something to be aware of, unlike the stock market, you won’t be able to get rid of your asset at the push of a button, it will take a lot more time to sell as its not as liquid of an asset compared to something as volatile as stocks. Third, real estate is fixed in location, its tangible, you can touch and feel it, you can meet your tenants if you have any, you can walk through and maybe even live in your property. You just won’t be able to do that with a stock. Fourth, and perhaps the biggest benefit about investing in real estate is that you have more control over the outcome than compared to owning some shares in a company. You see, to have any control over your stock going up or down, you’ve got to have a majority share in a company to make any real decisions. With real estate, the ball is entirely in your hands. You can get in touch with other people who have skills where you are weak to compensate for you weaknesses, you can hire local realtors like my friends shawn the surrey realtor, or appraisers, and notaries to help deal with the different aspects of a real estate deal to make you the most amount of money possible.
As for actually investing in land, there are different types of investments in the immensely large field of real estate investing. Most investors discover one type that best suits them and stick with it over the long-term to maximize results. I forgot to mention earlier, you could skip dealing with people and just use technology for real estate transactions and the transaction management process. Now back to the main point, typically, investors will discover something like renting office buildings and space to businesses is the safest path for them to cash out on their investment and they will just run with that throughout there investing career. Just remember to be smart about what you invest in and know your strategy inside and out, no matter what it is.