If you are like most entrepreneurs, you are constantly looking for new ways to grow your business, increase your revenue streams and acquire more leverage. As one of the largest asset classes, you may be considering real estate investing to accomplish all of those goals.
One of the attractions that real estate investment offers in comparison to alternative typical investments is…leverage. A powerful tool that isn’t as easily available in stock market investment.
Typically, when you purchase stocks and bonds, you must pay full market value for them at the time you place the buy order. Even buying on margin accounts is much more restrictive for most investors than the more liberal leverage available for real estate investment.
In comparison, a traditional mortgage generally only requires a 20%-25% down payment. However, there are often other types of mortgage financing options that may require as little as 5% down.
This enables you to control the entire property and the equity it holds, while only paying a fraction of the total value up front.
There are, of course, other methods of passively investing in real estate through platforms such as REIT’s (real estate investment trusts) and similar real estate investment groups. Typically, however they simply cannot offer you the same degree of leverage, control or profit potential in comparison to an individual real estate owner/investor.
Here are five of the many ways your life and business can benefit, if you become a real estate investor in Seattle.
1. Early Retirement
Obviously as an entrepreneur you are no stranger to hard work. However, having the option of retiring early is a huge payoff for efforts and risk! Buyandhold investments like apartment buildings or multifamily properties in Seattle can dramatically improve the odds that you will be able to retire younger, because they will generate both short and long-term income and equity growth potential.
2. Tax Benefits
What many people do not realize is just how many deductions you will be able to claim in association with your real estate investments. Your operating expenses and the interest on your mortgage can be claimed, potentially increasing your profits even further.
3. The Market
Not all real estate markets or local economies offer similar investment potential for profit. Identifying an area like Seattle’s strong markets and positive future growth projections will dramatically enhance your odds of success. The Seattle real estate market has been tremendously profitable for many years. Our diversified economy has never been stronger, which bodes well for continued growth for decades to come.
4. Passive Income
Two of the sexiest words in the English language are the fourth reason why investing in Seattle real estate is such a smart move as an entrepreneur. Just because you know how to work hard doesn’t mean that you should work hard for every dollar that you make. The positive cash flow that is earned from rental income and equity appreciation are some of the reasons why real estate investment has always been one of the most successful ways to build wealth. Hiring an experienced property manager and knowledgeable Seattle broker specializing in real estate investment are crucial to your success.
5. Reduced Risk
As an entrepreneur, it is wide to diversify your investments as a way of hedging against potential risks. Therefore, even if you are already investing in other markets like stocks and bonds, you would be wise to diversify your finances further by adding real estate to your portfolio.
Ready To Invest In Seattle Real Estate?
Find a long-term experienced Seattle real estate broker like myself who has a successful track record of advising local investors. Not all agents are versed in the nuances and complexities of real estate investment or commercial properties. Aligning yourself with other key professionals like an experienced property manager, handyman, etc., will enhance your chances of success dramatically and can resolve many challenges for you. It would be my pleasure to sit down and discuss your investment goals and how I can help make them a reality!