NEW WAYS OF BUILDING WEALTH: REAL ESTATE INVESTMENT

All of us constantly hear about the success stories of numerous people around the world. There are several books written, movies made, interviews done regarding how people become billionaires. While each one of them has their own way of doing things, there’s one thing that is common. It is investing. For any person on this planet, it is important to invest in multi-faceted platforms and instruments. Every major success story in terms of wealth tells us about the significance of investing. Idle money is of no use. Apart from a small savings portion, one should not look to store and keep money in vaults. It is important that we put back our money in the economy. This would not only make the economy grow, but also help us earn a significant amount of money. There’s certainly no denying the fact that wealth creates more wealth. Even if we talk about businesses, it is money that must be invested in order to scale the business and earn more. One must look to invest regularly in various sectors.

The Importance of Investing and Various Investment Opportunities

We live in a world that is extremely fast moving. It requires one to be dynamic and robust in order to survive and succeed. It is full of opportunities, however, one needs to be active and vigilant in order to benefit from such opportunities. The modern day world attracts an individual in zillion ways. While one is certainly attracted towards the luxuries & comforts of modern day life, one is often met with a shortage of money.

However, there’s a simple solution for people to end their woes of money. The answer to all the money problems lies in investing. Even till date, most people think of investing as being similar to betting. However, it’s not. Investing is an activity that involves proper application of mind. It requires an individual to carefully analyze and identify opportunities and sectors that hold potential. Also, it requires one to be patient and not impulsive when it comes to decision making. The value of compounding can not be equated with anything else in this world. We have seen multi-billion dollar giants double or even triple their money in a year or two by investing. Such is the power of investing that it can generate wealth at an extremely rapid pace.

Most people invest in the conventional sectors and instruments like stocks, gold. etc. While all of these sectors generate substantial returns, they are extremely dependent on the market conditions and volatility. For instance, in times of recession, stocks and gold are all likely to fall drastically. We have seen it multiple times how this has swept the wealth of millions of investors. Thus, it becomes important to look for ways of earning by investing even during recession. This is where real estate investing steps in. While most of you might say that the real estate sector is not new, there’s an added dimension to it.

About Passive Real Estate Investing

Real estate investing can help you a great deal in spreading and diversifying your portfolio. In fact, in recent times, a new concept has surfaced- Passive Real Estate Investing. Passive real estate investing enables you to remain invested in this sector & the market without much burden & obligations. With apartment syndication on the rise, where in different groups come together to finance large projects, this concept has picked up pace. One can now invest in this sector, enjoy the privileges of a shareholder without having to dispense ownership functions.

Passive real investing helps you to generate a substantial additional income. It does not require you to put in much effort. All that is required is for an investor to satisfy certain conditions & he can easily invest in the real estate sector.

Who Can Invest?

Given the size of the real estate investment and stakes involved, it becomes vital to establish a basic criteria for investing. As per the current norms of commercial real estate investing, only accredited investors can invest in this sector. An accredited investor is someone who can invest in the real estate segment as a limited partner. This safeguards him from discharging the regular functions of an owner. It also prevents him from any unforeseen and unlimited liability. All that he is required to show is that his net worth must be more than a million dollars. Alternatively, he can also show an annual income of around $20,000 – $30,000 & that he is likely to earn the same or more.

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