If you have ever considered yourself an entrepreneur, then real estate is possibly the best way you can profit and grow based off of your passions. When discussing good investments with like minded individuals, I am sure that you often have heard the stock market being thrown into the mix. However, real estate can be seen to be not only more reliable, but a better investment overall. Since 2000, real estate has outperformed the stock market approximately 2-to-1. Although it takes the heart of an entrepreneur to run a real estate business, as with all things successes such as this come through learning and hard work. According to a recent survey by Better Homes and Gardens Real Estate, 89% of investors in the U.S. are interested in putting their money into real estate. This is a great idea and works best while the market continues to grow, just as it is currently doing. Residential real estate as an asset class is a $29 trillion market, and the commercial sector adds another $10 trillion.
If you are looking more towards becoming a business founder, then you might be interested in investing in some cheaper, more run-down properties. Both a blessing and a curse of the booming market, Distressed properties — foreclosures and short sales ) — make up just 2% of home sales today, down from a high of 49% in March 2009, according to the National Association of Realtors. This means the houses on the market are currently in better condition than they used to be, lessening your chances of getting a house for an extremely low price. However, this also greatly decreases your chances of being scammed into an awful deal.
So if you are looking to invest in the real estate market, it is best to first discuss your options with someone more knowledgeable than you in the field. A big barrier to investment for many middle-class people is a simple lack of understanding, and a simple meeting or consultation can remedy that. Over 30% of survey respondents reported that they would be more likely to invest in real estate if they had access to a real estate investment professional for guidance. There is nothing wrong with reaching out for guidance, but if that is not something you are comfortable with currently, you could always turn to online research to get the ball rolling. No matter what you decide to do with your real estate investments, always remember to keep your entrepreneurial attitude and inspiration in mind. It will not only help with guiding you to your goal, but also in remembering why you wanted to reach it in the first place. If you do this, you will be ahead of the curve on the house market and real estate development in no time at all.