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

Should you suppress your numbers?
Should You Suppress Your Numbers?

Suppression is whenever you download a list and you take away any of the duplicates that you probably previously uploaded. So should you suppress your phone numbers? And the answer is absolutely no. What is suppression? Suppression is whenever you download a list and you take away any of the duplicates that you probably previously […]

Here’s How to Make Plenty of Passive Income as a Real Estate Investor

Make Plenty of Passive Income Love Passive Income? – Buy this pair of REITs and watch the dividends roll in. Real estate investing has long been a proven path to prosperity, but it also can involve a lot of upfront investment and then time and/or money spent on managing those assets. Then there’s passive income, […]

Property Data
Property Data Benefits and Walkthrough

Property Data Benefits and Walkthrough: Property Data Benefits and Walkthrough – So one of the things we do extremely well in our investment business is generate a ton of leads. We generate about 50 leads a week of qualified leads. That means people, that two tiers. One, either they’re in mass of amount of pain […]