It’s taken years, but you’ve put in tremendous work and finally reached a point where you’re ready to start your investment portfolio the right way. Starting an investment portfolio is something that you’ll want to consider carefully, but just remember that for many, real estate remains the go-to foundation for creating a solid portfolio that they can trust to last a lifetime.
Starting A Real Estate Investment Portfolio
Marshall Field, an entrepreneur from the 1800s, once said “Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy.” Outside of winning the lottery or landing a huge inheritance, he’s not too far off the mark even today. Real estate investors are well-known as being among the wealthiest in the country, and while your investment portfolio can rely on stocks, hedge funds, and more, it is well worth taking the time to build your real estate legacy as well.
Why Is Real Estate So Important? So just why should you consider owning real estate as an investment? There are several key reasons that stand out. Some of the main ones include:
- Leverage – Real estate is among only a handful of assets that allow you to use huge amounts of leverage to own the asset. Lenders will generally give you the money you need if you meet basic qualifications, and even a small 2% rise in your home’s value could give you double-digit returns on the investment.
- Supply and Demand – Mark Twain once said “Buy land. They’re not making it anymore.” That shows just why it’s worth investing in real estate. There is only so much of it to go around, and yet there is a constant demand for it. Simply put, it’s one of the most reliable options when building a portfolio.
- Inflation-Proof – Inflation can impact virtually everything out there in terms of cost, and makes it harder to get the most from your money at times. But real estate is one of the few things that is essentially inflation proof and that you can buy with confidence.
The key to succeeding when you’re creating a real estate legacy and starting your investment portfolio is to work with real estate pros who understand your goals. Take the time to talk to them about what you’re looking for, and they can help guide you towards investments that you can buy with confidence.