by Dan Stuenzi
January 25, 2010 16:19
Throughout American history, real estate has been an outstanding investment for many families and corporations. The Catholic Church is said to own more land globally than any other organization on the planet. And a McDonald's CFO is quoted as saying, "We're not in the food business. We're in the real estate business. The only reason we sell hamburgers is because they are the biggest producer of revenue from which our tenants can pay us rent." Most of the wealthiest families in America own lots of real estate, and the most prominent businessmen in any city typically own a lot of property.
So what makes real estate such an attractive investment?
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It's a limited commodity - "they aren't making any more land."
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It has a history of appreciation over time. Sure, the market is cyclical, and occasionally it makes a BIG correction as it did the last couple of years. But when the government keeps out of it, and market forces control, it tends to be a stable investment - slow but steady growth over the long term.
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Real estate offers some great tax benefits, and the politicians usually won't mess with them because people raise a huge stink whenever changing the rules is mentioned.
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It's an investment that can be leveraged. If a $100,000 house appreciates 3% in a year, you might think that's a 3% return on your investment. But if you bought that house with only $3,000 down, and that's all the cash you have invested - it's actually a 100% return!
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It's an investment that can provide great cash flow if purchased correctly.
If you've been thinking about becoming an investor, there are several things that have come together to make it an excellent time to get started. Excess inventory and a tough economy have brought prices down to affordable levels. Some properties have been on the market for a long time - there are deals to be had. Interest rates are at historic lows. Of course, cash is king. You can get the best deals if you can pay cash and close quickly - especially when lenders have tightened up their qualification requirements. If you live in Omaha, and are ready to get into real estate investing, I'd love to help.
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