Real Estate is one of the best alternative investment strategies if you want to build wealth with little effort. From cash flow to tax benefits, there are more benefits from investing in real estate than just owning the property.

And, guess what? These benefits are really of no secret at all; they’re simply the result of successful wealth-builders taking action on the right alternative investment strategies and staying persistent through the heights and depths of the journey.

5 (not so) Secret Reasons Real Estate is One of the Best Alternative Investment Strategies

“The major fortunes in America have been made in land.” - John D. Rockefeller

When you adjust for inflation, John D. Rockefeller still ranks as one of the richest men in history, even after 75 years. A high-net-worth investor in real estate, Rockefeller’s famous quote undoubtedly remains true as investments in real estate and land development are an important consideration to diversify an investor’s portfolio.

1. Little Effort

Have you ever thought about how the wealthy seem to make growing their capital look so simple? The most effort of investing in real estate actually comes from researching properties you wish to buy and then finding the right tenants. Then, collect on the cash flow opportunities.

2. Cash Flow

Real estate, as an alternative investment strategy, provides a unique cash flow opportunity for investors to receive a consistent return on investment from a tenants’ monthly rent. This can be used for retirement or other financial needs. When you take in more money through rent than you pay out in expenses (mortgage, insurance, taxes, maintenance, repairs), you create a positive cash flow on a monthly basis.

3. Inflation Hedge

Inflation is the sustained increase in the prices of goods and services over time; as inflation rises, every dollar you own buys a smaller percentage of a good or service. Many attribute inflation to an increase in the supply of money although, it can also be due to interest rate reduction, demographic changes, money velocity increases, etc. However, real estate serves as a hedge by reacting proportionately to inflation. As inflation increases, so do home values and rents.

4. Tax Benefits

Similar to owning a business, owning investment properties brings a number of tax benefits that can come back to you in the form of deductions. Any money spent on mortgage interest payments, insurance, property expenses, depreciation, it’s all tax deductible. These deductions are available to incentivize owners to reinvest in the property.

5. Generational Wealth

Passing on property from generation to generation, if managed properly, can make life a little easier for the family. If you can buy property now, whether it be a single-family house, multifamily property or a commercial investment, it will become an amazing asset to pass on to your heirs and support future generations.

Learn About Alternative Investment Strategies with HUDSONPOINT

Are you aware that you should invest but not sure where to being?

Today’s financial world can be intimidating, but with the right insight and direction, diversifying your portfolio with alternative investment strategies can be one of the most lucrative endeavors you partake in. And real estate, in particular, can serve as an important wealth-building vehicle for savvy investors.

With so many alternative investment strategies available, our services are customized specifically to fit your financial goals and various life stages. Consider investing in real estate to diversify your portfolio and experience valuable results with our innovative solutions.

Contact us today at 732-321-5244 to learn more about your options for alternative investment strategies.