In the last two centuries, about 90% of the world’s millionaires have come from entrepreneurs who invest in real estate.. Although the U.S. experienced a recession a decade ago, by 2016, more millionaires lived in the US than ever, according to MSNBC. The reason why real estate is such a sought-after investment is because it not only provides private real estate investors with diversification, but also works as a hedge against any potential inflation.
Invest in Real Estate: Scarcity
In the words of the wise Mark Twain, “Buy land. They’re not making anymore.” While it may sound more whimsical than logical, the truth is that gentrification is real – whether the area is Brooklyn, or San Francisco. More young professionals are flocking to cities to purchase their first-homes – and if they decide to rent; landlords are there to collect every month at a high price because of the demand in these urban areas. Private real estate investors therefore always have a market.
Invest in Real Estate: Commercial
Whether you’re an accredited investor or a hedge fund, the private real estate market is booming now – and it consists of four sectors: office, multifamily housing, industrial, and retail. Whether renting out space out to a salon, leasing out a warehouse, purchasing a factory to streamline your business operations, or purchasing a building/complex for your retirement plan – the fact is that private real estate investors almost always have a sure bet in an ever-changing world.
Invest in Real Estate: Create Wealth
There is perhaps no better story illustrating the wealth that can be created in real estate other than the female entrepreneur Barbara Corcoran. Mrs. Corcoran was always a motivated individual – she had twenty-two – yes, twenty-two jobs – before something happened. Her boyfriend, who happened to take notice of her business acumen, offered her a $1,000 loan. Interestingly enough, it wasn’t even her idea, but her boyfriend’s! “The only piece I didn’t enjoy was having a boss,” Corcoran has said about her 22 previous jobs. And now we know why – Corcoran turned that $1,000 loan into the Corcoran Group – a 5 billion-dollar company, which she sold in 2001 for 66 million. She’s clearly better at being her own boss! You can now see her on Shark Tank, giving entrepreneurs from all across the country an opportunity to mentor/grow their business – and she was able to achieve this all through her foray as a private real estate investor! Barbara Corcoran has truly epitomized the American Dream.
The fact that a woman who never had real estate on her mind turned into “The Queen of New York Real Estate” illustrates the massive gains that can be obtained in the global private real estate market. Even Bloomberg reported as recently as July 2017 that “wealthy investors are leaving hedge funds for real estate” – and with good reason. The beauty is that unlike a retail business, with its seasonal trends and cycles – people always need a place to live, whether it’s a family, retiree, or a college student.
Invest in Real Estate: Great Returns
In the words of the entrepreneur, Armstrong Williams, “Now, one thing I tell everyone is learn about real estate. Repeat after me: real estate provides the highest returns, the greatest values, and the least risk”. There’s certainly a reason why so many wealthy entrepreneurs tout the benefits of private real estate. To put it more simply, in the words of Louis Glickman, famed real estate investor, “The best investment on Earth is Earth”.
The number to having success when you invest in real estate is?
To understand what you are there to do!
From our experience, this is the most critical phase. If you have a clear plan it is easier to deploy capital while still operating within a margin of safety.
The SWFL REIA is the premier place to understand what you are here to do, in relation to real estate investing! We look forward to meeting you at a meeting soon!
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