Real Estate Risk in Your Own Hands
One of the typical ways people invest is through stocks, mutual funds, and other assets that are often managed by an investment specialist entrusted to give you the best return possible on your money. Shipping your money off to a third party may be advisable for handling high-end investments like these by yourself, but in some cases, mistakes that you have no control over can cost you money. Losing money due to a stranger’s actions can be hard to swallow for many investors.
Though real estate investing is not for everyone, it certainly offers some advantages that more traditional investment mechanisms might not, a chief benefit being the ability to control your own financial destiny. Depending on the faith you have in yourself, this could be a blessing or a curse, but the ability to at least have the option of controlling the fate of your own investment dollars is attractive to many people.
Of course, there are always drawbacks to every decision in life, and going after real estate investment opportunities is no different. To be fair, we’ll go through a few of the negative aspects of handling your own investment future to give a more complete picture of that decision.
Perhaps the chief issue many people have with taking on real estate investment is the time and effort it takes to hunt down opportunities, sort them by viability, purchase the property, execute needed renovations and ultimately sell off the investment. Understandably, this takes time and for some, shipping their money off to an investment professional that handles everything for them is worth the reduced control over the money.
Additionally, someone involved in real estate investing is left with no one to blame but themselves, and that can often be a tough thing to swallow if a deal goes south. Instead of having some kind of recourse when an investment planner squanders away some of your money, you are instead the real estate investment planner and client in one, and any mistakes you make hurt yourself.
Of course, I would not be writing this article if I did not think there were substantial benefits in real estate investing. If you value control over your financial future and believe in your ability to manage the investment process, real estate investing offers that kind of control in a way few other methods can offer. By the sheer necessity of active management when it comes to real estate investment opportunities, you remain engaged and active in the process at all times.
The earning potential of real estate investing is also enormous and for those that get the hang of it as a process, the real estate investment industry can offer almost endless opportunities for growing wealth and gradually building a substantial nest egg. Without having to follow the fluctuations of the market or bet big on a particular startup’s IPO, you can instead see big gains through a more straightforward investing method that you can then use to parlay into bigger and better investment opportunities.
Certainly, no form of investing fits the financial needs and portfolio of every person, but for many, the conventional route of stocks and bonds offers a cold, removed solution to investing that has the very real prospect of enlisting a stranger that could harm your net worth. For consumers that see that as a distinct negative, real estate investing offers a hands-on approach to the same goal that puts the control over the situation in the hands of the person whose money is on the line. That kind of control can be both a blessing and a curse, but for those who value control, it puts that control in the investor’s hands.