Real estate currently makes more money for capital investors than most other investment opportunities in the economy today. Rock bottom prices, foreclosures, short sales, combined with low interest rates, and a overly cautious general public, has resulted in one of the best buyers markets in recent history. For those investors who have taken their investment money out of the stock market due to it’s dismal performance lately, real estate is a choice many investors have opted to pursue. Let’s call these investors “converts”.

Why so? Let’s look at it from a converts perspective. A convert can buy property (secured investment), pennies on the dollar (at a discount), with only 10 – 20% down (leveraged capital). The convert then begins to earn money from their capital investment in one of several different ways. The convert either holds it (as part of their portfolio) for a long term equity gain, sells it (wholesale, retail) for a quick capital gain or, rents it (lease, or lease/purchase) for a monthly return on their capital and tax advantages.The real estate investor remains in control of the investment’s performance.

Real estate is the universal investment opportunity that gives the investor the total control over the actual investment (property). When an investor buys stocks or bonds their control over that capital investment is all but gone. The performance of the particular stock or bond is at the mercy of myriad of uncontrollable factors, such as stock market fluctuations, management performance and a whole host of economic indicators.

More and more millionaires have made their money through real estate than any other investment, and the trend is continuing. More so today than ever, with property values at the lowest point in decades, foreclosures, short sales, and low interest rates. Smart investors continue to put their money where they know they have the most control and best value. Securing investment dollars through a diverse portfolios that includes real estate is one option that many have savvy investors have chosen.

Author: Cathleen A. Haas
Article Source: EzineArticles.com
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This entry was posted on Wednesday, December 9th, 2009 at 1:56 am and is filed under Venture capital. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.