Real estate investing involves real estate comps, purchase, holding, and sale of a property with the expectation of using the flow of monies for potential future deals and thereby generating a favorable return on that investment, ROI.
Real estate investing offers the advantage to the investor to leverage. In other words, with an investment in real estate, you can use other people’s money to magnify your rate of return and control a much larger investment than would be possible otherwise. A step further, with rental property, you can virtually use other people’s money to pay off your loan.
Of course, we know that capital is required, there are some risks associated with investing in real estate, and real estate investment property can be management-intensive. Learning to manage those risks and make the field work for you is the challenge. Real estate investing is a source of income that cannot be denied. The benefits are too great not to accept that challenge.