As someone who has been investing in real estate since 2011, I have my reasons for investing in real estate. In this article, I want to talk about these reasons and how they have led me to start Kennedy Remedy Investments. Maybe they will also resonate with you and get you thinking about starting your real estate investing journey.
The great Warren Buffet is credited with saying, “If you don’t find a way to make money while you sleep, you will work until you die”. Passive income is the holy grail of investing in our quest for financial freedom. Real estate achieves this in two ways. Firstly, property appreciates over time. Depending on the market, appreciation might be fast or slow, but history shows that the value of property goes up over time. Appreciation is typically realized at the point of sale when you sell a property for more than you bought it for. The second way in which real estate generates passive income is through cash flow. By investing in properties that people and companies need and want to use, we create a stable stream of income from tenants.
Now you might say… Ms. Remedy, but you’re an active investor! Yes, real estate investing is my job and I have chosen to be an active real estate investor. I started Kennedy Remedy Investments to combine the capital of my investors with my expertise as a real estate investor, to create the appreciation and the cash flow that I mentioned above. That’s the beauty of real estate investing, you can make it as passive, or as active, as you like.
Anyone who has invested in the stock market knows that the combination of short-term company or market events, and major economic and market trends, results in volatility. Investing in the stock exchange with a long-term, well-researched strategy can generate good returns, but it takes a strong heart and nerves! When it comes to property, people need places to live and do business. As a real estate investor, when you buy well-priced, quality properties that are well-maintained and in attractive locations, tenants tend to stay and pay their rent. Maybe this doesn’t provide the same heart-pounding excitement as the stock exchange, but I sleep well at night with a good portion of my portfolio invested in assets that provide, good, steady, predictable returns.
My third reason for investing in real estate only came to me after I had been doing it for a while. You see, while all people need places to live and do business, not all people or companies can, or want to, purchase or build their own properties. By providing quality homes or commercial properties in communities, real estate investors provide the infrastructure needed for economies and communities to grow and flourish. It may not be the reason I started out investing in real estate, but it sure makes me feel good to provide society with such an important contribution.