This week on my blog, I am taking some time to talk about how awesome real estate is. Even though I have invested in other kinds of assets, real estate still is and always will be my favorite! I already spoke about real estate’s inherent value due to its being in limited supply, so let me tell you another reason why I love real estate: it’s a tangible asset.
Tangible assets are good for sellers: Real estate is a completely different kind of asset. It is something that we see every day. We know its value, we can walk through it, we can see the surrounding area, and we can visualize how it might be used. I feel sorry for financial advisors sitting in a bank because I don’t know how they convince most folks to buy what they’re selling. I have it so easy when flipping real estate: I show the person the parcel and say: “Do you want to buy this?” and they tell me either “yes” or “no”. That’s the beauty of a tangible asset.
But tangible assets aren’t only better for sellers…
Tangible assets are good for buyers: Investments can be tricky, because financial advisors have been known to bully novices into putting money into something they don’t really understand. Advisors talk about mutual funds, 401k accounts, or sophisticated-sounding terms like straddles or call and put options.
But what’s tough about these kinds of investments is that the average person often does not value them correctly. Or worse, the average person may not understand 100% of why they are being told to invest the way they are.
But when investing in real estate, you can research and find out exactly how much you should pay for any given parcel or house. The comparables are out there; you just have to go find them.
And even though the housing market might go up and down, it will never be like some companies that go bankrupt and leave their shareholders empty-handed. Real estate is a tangible asset and will always be there – and if you invest the way that I teach you to, you will never have to worry about losing your real estate to foreclosure (unless that what you want to do).
The fact that real estate is a tangible asset is just one more reason that I think it’s the best investment!