REAL ESTATE TIPS...Why Every Billionaire Invests in Real Estate

This guide is going to show you some of the reasons why you should be investing in real estate--and not just startups.

BY AJ AGRAWAL

Real estate investing and startup investing are two options open to you. If you are someone who is looking to invest money, you may think that one good option is to look at startups. However, there are also benefits to investing in real estate. This guide is going to show you some of the reasons why you should be investing in real estate not just startups.

Real Estate is Back

The real estate market has recovered in many areas since the 2008 crash. A survey of 84 US housing markets revealed all of them were performing at least well, and there was growth. There are still areas of the US that you should avoid at all costs, such as Detroit, but in the vast majority of areas the market is recovering and there's sufficient opportunity to start investing again.

Like startups, the real estate market is starting to bubble nicely and there are plenty of opportunities, regardless of which part of the country you happen to be in.

More Opportunities than You Think

Those who invest in real estate believe that the only options they have is to either sell a house or rent one out. The market has diversified in recent years, opening up a whole slew of intriguing opportunities to invest. You can flip houses, invest in exotic real estate options, and even diversify into purchasing land for construction purposes.

In many ways, the real estate market has mirrored the startup market in that there are a range of potentially high earning income opportunities. See what real estate based high yield investmentsare available today and you may be surprised.

A High Volume of Foreclosures

Foreclosures are where the owner of the house can no longer pay their mortgage and the lender has to repossess the house. Despite the boom in real estate, there's anextremely high volume of foreclosures throughout the country. Again, people have borrowed more money than they can afford to repay.

With rising interest rates hitting people, the rate of foreclosure is going up again. In the startup world, if you were forced out of your home or office this would be considered a bad thing. In real estate, financial failure is an opportunity for people like you.

Foreclosed homes tend to be available at a much lower market price because the creditors want to get the property off their books quickly, but beware because there are pitfalls in foreclosed homes.

Keep Things Ticking Over

There's no denying that investing in startups can be lucrative. Every investor dreams of the day where the startup they have invested in gets bought by Facebook or Google. This can turn you into a millionaire in a matter of hours. Nevertheless, with great potential rewards comes great risk. There are many companies that have received immense amounts of investment only to lose it all and leave investors out of pocket.

As someone investing in a high-risk industry, you have to make sure that you have an alternative source of income. The big benefit of real estate investing is that it creates a significant amount of passive income. This is income that you can continue to survive on, even if your startup investments go south.

Startups are Never Assured

With real estate investing, you can quite accurately predict how much you are going to make over a certain length of time. For example, with a rental property you can calculate how much income you will have over six months, compare it against your expenses, and then pocket the difference. You know exactly where you stand.

Startups come with no such accuracy. In many cases, you are investing only in an idea or a concept. There's no potential for predicting how much it's going to be worth in a year from now. You don't even know if the company is still going to be operating six months from now.

Startups leave you with no clues as to what you can expect to get back. In most cases, real estate is a safe option.

Something Hard

A startup is representative of little. Anyone who knows how to invest in startups is aware that it's an idea and may only have a few customers. Real estate is something tangible. It's protected against total economic meltdown because you always have the bricks and mortar in place. You have something to hold on to until things pick up again.

And this can be a great barrier for your finances. It comes with a whole host of benefits, as you can see. That's why you should add real estate to your portfolio.

Will you invest in real estate today?