With the current market climate, investing in real estate has never seemed more favorable. From high growth to quick turnaround to advantageous interest rates, an investment in real estate can be a wise investment for you and your future, whether you’re looking to generate reliably monthly income in the form of rental and interest payments, or you want to flip houses and make gains that way.
However, it’s important to note that while market conditions are favorable, there are several factors that come into play when investing directly in real estate that you may not be considering.
Furthermore, there may even be a few alternatives out there if you want all of the great benefits of investing in real estate without having to deal with the stresses and headaches associated (see: the Fixed Income Fund). So, with that being said, let’s take a quick look at some of the pros and cons of investing in real estate.
The Pros
Investing in real estate offers many advantages, both short term and long-term. When it comes to the short term benefits, you’re looking at a cash cow in the form of a rental property, which, in the right market, can provide you with a steady and reliably monthly income in the form of rent checks. Long-term, in the right conditions, your property should appreciate significantly in terms of value, meaning you may be able sell it at a later date for a nice profit.
Another key benefit of owning real estate is that you have direct control over your investment, rather than investing in the complicated stock market and entrusting your money into the hands of a broker. Besides, houses are always in demand; they are a basic need, after all, and finding a tenant is often the least of your worries.
By investing in real estate, you also get an investment that is beneficial when it comes to filing taxes, and you can rest easy knowing your asset (the house or houses) are insured.
As long as you identify the right market, understand the local trends, and don’t have the need for immediate liquidity, then investing in real estate can certainly be a lucrative opportunity. However, there are certainly some red flags when it comes to real estate investing. We’ll take a look at those below.
The Cons
While the market is generally regarded as stable and favorable for real estate investing, doing it on your own can be difficult. From dealing with the hassles of finding funding, getting bank loans, filling out never-ending pages of documents, and waiting in limbo during the closing period, investing in real estate can be a time-consuming hassle. Furthermore, while it is likely that you’ll always be able to find a tenant for your rental property, finding good tenants is another story altogether.
As a real estate investor, you’ll likely also have to serve as a landlord, which means managing your tenants along with any repairs, maintenance, and other costs. Tenants can be destructive, unreliable, and unwilling to work with the terms and conditions of your agreement, which can increase your risk as well as your stress levels. Besides, working on your own as a real estate investor can still be risky in any market, due to the possibility of single loan defaults. It can be tricky to find the right markets, identify the trends in an accurate way, and even secure funding on your own.
What if there was a way to experience all of the pros without any of the cons? Well, luckily there is. You too can generate stable monthly payments from mortgage interest without having to deal with the hassles of solo real estate investing. How is this possible? Keep reading to find out.
The Fixed Income Fund Solution
At Tactical Wealth, we constantly hear from investors who are looking for a safer, more reliable, and more lucrative way to grow their wealth. That’s why we took all of the great benefits of fixed annuities, combined them with the great benefits of real estate investing, and developed a tactical strategy known as the Fixed Income Fund.
With the Fixed Income Fund, you can generate stable, consistent monthly income for up to 30 years after making a principal investment. And, similar to real estate investing, we use those investments to buy mortgage and trust deed loans in historically stable markets and in areas with advantageous foreclosure laws. That, along with our pooled investments, allows us to protect against single-loan defaults and ensure that our investors always receive their monthly payments.
The Fixed Income Fund is an innovative tactic which can provide you with peace of mind along with a high rate of return, without having to deal with difficult tenants, the bank financing process, or the single loan market risk. Are you interested yet? We thought so.
Contact Tactical Wealth for more information about our innovative real estate investment opportunity, and get your free report today.
