fbpx
real estate investing

Real Estate Investing – The Pros And Cons

Experts Weigh In on the Pros and Cons of Real Estate Investing

According to Newsweek, CNBC and other sources, billionaire industrialist Andrew Carnegie once said that 90% of millionaires got their wealth by investing in real estate. That alone should be enough for investors to at least consider real estate. But like any investment, real estate investing has both its pros and its cons.

You’ll certainly have to do your homework to be a real estate investor, as you’ll need to understand a wide range of financial, legal and general real estate terminology. But the rewards can be exceptional. Here’s a look at some pros and cons of real estate investing, as described by various professionals in the industry.

Pro: Passive Income

One of the prime reasons to invest in real estate is to generate passive income. People will always need a place to live, so well-located rental properties will always be able to generate income. With the right property in the right location, you may be able to generate enough passive income to cover your mortgage and even provide you with excess cash flow.

According to Bethenny Frankel, who has gone from reality TV star to real estate investor, as quoted by CNBC, “Investing in real estate is a great idea if you are in it for the long haul, not a quick return. Your best bet is investing in residential properties that produce rental income year-round.”

Con: Property Management

The downside of owning a rental property is that you’ll have to put in some effort to manage it. If you’re buying a short-term rental, you’ll need to manage check-ins and check-outs, cleaning and the nightly needs of your customers. For long-term rentals, you’ll have to screen for reliable tenants and respond to their ongoing maintenance requests. You’ll also typically generate less income with a long-term rental than a short-term rental in a hot area — although it may be more consistent with the right tenants. With the wrong tenants, you’ll also have to deal with late payments and possible damage to your property.

About Skip Force LLC.: Skip Force is a SaaS company based in Austin, TX. Founded in August of 2019, Skip Force has developed solutions, for real estate investors and resellers, to streamline the skip tracing process to effectively close leads.

Related News

Investing in Real Estate

3 Factors To Consider When Investing In Real Estate

Quite a few people have considered investing in real estate. It can be an attractive way of generating a passive income. When this is done the right way, the profits can be significant. There’s more involved in this than many people might assume. You’ll need to consider several factors. Many […]

Read More
Intelly

Intelly Has The Potential To Change The Future of Real Estate Investing

Intelly is a blockchain-based real estate investment platform that allows participants to invest in all types of real estate opportunities around the globe. The platform will enable users to invest in ongoing construction projects, residences and commercial properties. With their fractionized-nonfungible token (NFT) infrastructure, Intelly has created a tool for […]

Read More
Passive Real Estate

Build Wealth With This Guide To Passive Real Estate Investing

Passive real estate investing may be right for you. If you ask any investor what the most reliable, intelligent methods of building wealth are, there’s a good chance that investing in real estate will be on that list. Indeed, millions of people in the U.S. and worldwide are using real […]

Read More






Privacy Preference Center

Cart
  • No products in the cart.