Ever wonder about the various options and loans to invest in real estate? I recently received an email from a young person, not long out of college. This is a smart young person in my view; someone looking to get a head start on getting financially secure early in life. This young person wants to start investing in real estate but does not yet have access to capital that would be required for this. So, what advice do I have for a young investor willing to take a moderate risk? Read on to know about loans to invest in real estate, REITs, and house flipping, and why there is one clear winner when it comes to investing.
To invest in real estate today, there are several options. One option is REITs (real estate investment trusts) which is basically like buying housing stocks. In my experience, this is something that foreigners and older investors often opt for. This is one option, but it is not the best option because it doesn’t let you take advantage of loans to invest in real estate – an investing advantage that only Americans have, as I explain below.
House flipping is another option that investors consider; ill-advisedly in my view. This is because I see this as a very risky venture and one that is fraught with peril. This is an option that is subject to the vagaries of the market, and an investor could end up losing vast sums of money. The only people I have seen making money by flipping are the professionals; those who do this for a living, and even they can end up losing money from time to time. In my podcast, I share the story of a woman who has been flipping for 40 years and still ended up losing money recently.
Investors who want to invest in real estate in the USA have an unparalleled advantage – it is the 30-year fixed-rate loan. No other form of real estate investing offers this advantage. This is an inflation-proof loan where your repayment amount never changes. You pay the same for your mortgage, whether you pay one dollar today for a product or two dollars for the same product after some years.
To come back to the original question about starting out investing young, I say there is no better idea than this. For the young person who has a good job and is willing to take the plunge into investing, this is a great option. Maybe a young person may need a family member to get on board to gather together the down payment amount or may need the wherewithal to source their money from elsewhere. However, if that young person starts to invest in their 20s, they can potentially retire in their 30s.
Starting to invest in your 40s is also good enough – you still have decades for your investment to create value and secure your future. I will be speaking about the best loans to invest in real estate, the best cities to invest in real estate 2023, and more in our upcoming property expo. We will also be having some top experts to offer more insight into the right way to invest. You can sign up for the expo for free – sign up today and if you have any questions, drop us a line at email@example.com.