A plethora of investment options is available to people looking for places to invest their savings. One such choice is beginning real estate investing. It is a highly rewarding investment option and if you do decide to make money in real estate investing you will enjoy excellent returns on your investment, much more than most other investment options.
Real estate investment has the vast potential to give huge returns. You can borrow the money from a bank to finance your real estate investment. Most of the banks are willing to finance 90% of the cost, so you can get a deal with a 10% down payment. One can also check out the reviews of freedom mentor program to get detailed information on real estate investing.
This gives you a 10 times return on your investment. Let’s take the example – if you have $10,000 to invest and assume you get 10% return regardless of the investment vehicle you use. If you invest in stock market to buy shares worth $10,000 then at the end of 12 months, your investment is worth $11,000.
Instead, if you invest the same money into real estate with 90% bank loan, you earn 10% on the total $100,000 investment and you will end up with $110,000.
As you see from the example, your $10,000 has been doubled using real estate investment, whereas it could only produce an extra $1,000 in the stock market. You can understand the reason for this – your lender’s money is working for you too.
That is the power of leverage and is one of the greatest advantages of investing in real estate. As you will see, there are many more advantages to make money in real estate investing.