While it is true that Americans live in a capitalist society, something that seems to come in a ‘survival-of-the-fittest’ mode after you’ve completed your education is to get ahead, you need a plan. Theoretical discussions of investment and finance mean very little to most teenage minds.
Fast forward 40 years; you’re of retirement age facing the rest of your life. Even if you’ve stocks, bonds, IRA’s, Treasury notes, CD’s, and other cash stashed away under your mattress, you may not have the investment growth that’s going to preserve your money in a meaningful way.
Before you wind up on that precipice of having to decide to work another two decades or move to some remote place, far from your friends and your family just to make ends meet, decide to do something greater.
This perilous end is a reality that many 40, 50, and 60 year-old’s are facing right now; a reality that their 20 and 30 year-old children would be wise to take heed of. It’s a fact that from 2000-2009 unless you were managing some kind of an as yet undiscovered Ponzi scheme, your well diversified financial portfolio likely looks about the same or worse than it did 10 years ago. Unemployment and underemployment forced people to have to tap into their financial reserves for personal emergencies, making your well-balanced portfolio of 10 years ago look even shoddier today. It’s also true that a majority; 53% of Americans have less than $25,000 in savings. Add into that equation the tenuous future of Social Security and Medicare and you get the picture.
So how can you avoid this gobbledygook in your own personal financial future? One sure way to have a near-constant stream of reliable investment growth income coming in is to have single family rental real estate.
If you own your own home already and have bitten off the head of the mortgage monsters head, diving back into that morass may not be on top of your list of things to do. Still, if you look at the way your investment growth can pan out over time, it’s almost ridiculous not to be investing in real estate.
There are two main facts hesitant investors should consider when they’re considering diving into real estate investment: The vast number of distressed properties on the market today and the fact that homeownership is down and expected to continue to fall.
Why those two things? Simple economics. If you have $200,000 invested in stocks, your IRA, and other savings and investments, how has that money been treating you lately? Especially if you’re invested in conservative mutual funds or something even slower growing; you could be earning 1 or 2% – you could be breaking even or losing money on paper when you factor in inflation to these lackluster returns. Real estate is a tangible asset; you own the home and you own the land that this home is built on. Being the owner you can do whatever you’d like with it. You can rent it, you can live in it, you can operate another cash-generating business like a bed and breakfast; the choice is really up to you.
One more point to remember is that with homeownership way down, people still need somewhere to live. Families who need to rent often choose to do so in a single-family home. The market for single-family rentals is infinite. When one family is able to buy; another who needs to rent will be close behind.
If you’re looking for more information about generating investment growth income from real estate, you should talk to an industry leader.