For over two thousand years, many of the world’s wealthiest people, from blue-blooded royals to world-famous millionaires and billionaires, have built and maintained their wealth through their investments in real estate. Forbes estimates that roughly 10% of the world’s wealthiest billionaires made their fortunes primarily by investing in real estate.
As an asset class, real estate provides a better return than the stock market. Real estate is usually immune to the volatility caused by stock market investors’ emotional reactions to current events in the news. While there are many advantages to investing in real estate, it is not without its fair share of challenges.
Investing in real estate is a contact sport that is not for the faint-hearted. Several complex processes need to be executed for each transaction. Some of these processes include, but are not limited to:
- Researching potential investments
- Securing financial support from banks and other financial institutions
- Dealing with numerous legal documents
- Obtaining the proper permits and approvals
- Finding the right tenants
- Managing and maintaining the property and many more
Success in real estate investing requires sustained focus. For example, you could theoretically learn the steps to perform cardiac by-pass surgery from a surgeon in a matter of hours. But would you feel confident performing the surgery if your mother or father was on the operating table?
It is safe to assume that you would not go through with the operation. You would prefer a competent surgeon who has spent many years studying medicine. With them having even more years of real-world experience performing hundreds if not thousands of successful cardiac by-pass surgeries, to operate on your beloved parent.
This same principle applies to real estate investing. Doing it yourself might be great if you were buying your primary residence or vacation home. But investing in real estate to create wealth is an entirely different field on its own. You would have to cautiously determine the best way to invest your capital in projects that will give you passive monthly income and massive capital appreciation after the property is sold. In that case, you need to work with a team of experts who solely focus on the business of real estate investing.
The benefit of working with professionals who are experts at just one thing means you’re able to tap into their years of experience, which saves you time and money associated with making mistakes.
Additionally, you’re able to benefit from the economies of scale that exist due to the processes they have in place that assure repeatable excellence for every single transaction.
The most underrated benefit of working real estate investment professionals is the peace of mind they provide. As a DIY real estate investor, you open yourself up to all kinds of issues attached to owning and managing a property. From getting late-night phone calls about surprise problems. To finding and vetting potential tenants, dealing with roommate or tenant disputes, and so much more. These headaches prevent you from accumulating capital by distracting you from focusing on your primary business. Therefore, forcing you to spend time away from your family. Professional real estate investment firms have property managers highly skilled in managing their operational side associated with investment property.
While we can teach our principles, philosophies and processes for profitable real estate investing, the truth is our business isn’t set up to do so. Warren Buffett, the greatest living stock market investor, has millions of fans and followers who would love to learn the art of investing under his guidance. But in his over 50 years of active investing, he has never taught a single course in investment management and probably never will.
That’s because he focuses his time and skill on creating value for his investors. Anything else will distract him from his primary mission. Plus will not yield a high ROI worthy of the time investment.
The team at ARTOL Real Estate Investments spends a lot of time and energy creating value for our investors by using our skills to source, invest, and manage high-quality income-generating real estate investments that provide high ROI.
If you’re interested in learning how to invest in real estate, several experts have created courses you can purchase. They will teach you everything you need to know. Sadly, we’re not one of them. However, if you want to partner with real estate investment professionals who can help you build wealth, then please get in touch.