Real estate is different from other asset classes because of the cash flow that it creates. When you invest in real estate, it is different from investing in other asset classes because with real estate, the money you are investing buys you cash flow. For example, if an investor purchases a multifamily property, not only do they have the tangible asset, they also have now bought an asset that generates income, rather than buying an asset, like a stock, and waiting/hoping for the value to increase to realize some return. In real estate, you can start earning your initial investment back relatively quickly, instead of having to realize a profit when a sale has been made. This method is the reason man real estate owners build wealth, especially over time. They invest their money in buying multiple streams of revenue.
Historic patterns in the real estate industry have shown that it is likely that the longer you hold onto a piece of property, the larger your return will be. Uniquely, real estate is also a tangible asset. For example, one can use a multifamily home as an investment method, but since it is a tangible item that is being invested in, it could also be multipurpose as a home for the investor. Real estate is different than other investments because it serves the investor in multiple ways. One can put their money into a property, and while that money is working for them, appreciating in line with the market, they can actually use the property for multiple purposes which adds value to the investment for the owner.
For more information contact Casandra Properties at 718.816.7799 or email info@CasandraProperties.com.
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