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IN A NUTSHELL: WHY YOU MIGHT LIKE REAL ESTATE INVESTMENTS

By
Real Estate Agent with Wes Sanders Realty

First,  the tangibility of real estate. When you have $50,000 invested in a group of stocks, you have, at best, a piece of paper to prove it and the reputation of some financial institution you know very little about to back it up. With real estate, you have an actual physical property with a deed that has been validated and recorded by the government.

Second, the simplicity of it.   You will not  have the problem of understanding options, straddles, and covered calls. Real estate is pretty basic: The only things you have to deal with are the price of the property, the cost of money, simple appreciation, and market value.

Third, because of the mortgaging ordinarily used to buy real estate, the appreciation you get on a property's value is leveraged. Let's say, for example, you buy a $200,000 duplex with a $40,000 (20%) down payment and it appreciates at the rate of 5% per year (which is the typical inflation in real property values). After one year, you're up $10,000, or 25%, on your initial investment (not counting costs or any amortization or rental gains). 

Call "Wes" today to start your real estate investing   503-495-5419

Bill Exeter
Exeter 1031 Exchange Services, LLC - San Diego, CA
1031 Tax-Deferred Exchange Expert

Hi Wes,

Great post.  It is so true.  Invest in what you understand and avoid that which you don't. 

Jan 08, 2008 07:52 AM