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The Real Estate Basics Course [Module 1]: Why Real Estate?

Why Real Estate is the Best Way to Create Cash Flow…So You Don’t Have to Work Forever

Approximate Reading Time: 18 Minutes

Learn > The Real Estate Basics Course [Module 1]: Why Real Estate?

Published: May 21st, 2016

Imagine your life a decade or two from now.

Who are you?

What do you do?

How do you feel?

Now come back to the present moment and ask yourself, what is it that you really want.

If you’re like most people, then you probably have a long list of plans for the future. Children get older and need to go to college. Parents get older and need to be cared for. You might like to take a few vacations and travel around a bit. You’d probably also like to retire someday.

Now, think about your financial situation. Will you be able to make these dreams a reality in time? You might feel a small twinge of panic when thinking about your financial future. We know we’ll need money to live our lives to the fullest, but that seems to be getting harder and harder to accomplish.

“The truth is, countless people just like you are realizing they won’t have the money they need to live the life they want. These people won’t be able to retire. They may not be able to send their children to school and they won’t be able to help their parents when the time comes. One by one, they start removing things from their list of dreams until the only one left is survival. When someone reaches that point, a sudden and unexpected problem can send them over the edge. I know this all too well, as you will soon find out.” — Kathy Fettke

In this article you’ll learn why becoming a real estate investor might be your ideal solution.

If you invest in real estate, you might be able to retire.

People who invest in real estate have an opportunity that many people in America do not….the ability to actually retire. Maybe even early.

Here’s why:

1 – People are outliving their money.

People are living well into their 80s these days, and many people are coming to realize that they don’t actually have enough saved to cover their expenses. “While this may sound like a positive change, it’s creating an interesting problem… People are now outliving their money.”

2 – Cost of Living Is Skyrocketing

Inflation is making your living expenses shoot up massively every year. It’s getting more expensive live each and every day…and this makes it harder for people to even do the most basic things.

3 – No more pension and social security.

Our parents we’re able to retire because they could actually depend on receiving a pension and social security. Unfortunately, we won’t be so lucky. “It was a lot easier to save for retirement when the average worker retired at age 62 and the average life expectancy was 66.”

At the end of the day…People are living longer, which is great. BUT in their current state, pension plans and social security can’t take care of people for that long. The Result: a lot of companies have stopped offering pensions AND you probably can’t count on social security either.

So, now what?

Real Estate Investing > the Stock Market

Many of us have been told that we should set money aside in mutual funds, IRA’s and 401k’s, so that we can grow our retirement savings over time.

The big question: is this really the best way to invest our hard earned money?

So you can better understand the pros and the cons, let’s imagine this scenario: you have $500K lying around, and you want to invest it. You aren’t sure which investment option is best, so you decide to invest half in the stock market, and the other have in the real estate market.

Fast forward 10 years, and check out the following chart to see what happened.

real estate investor better than stock market

Author

Jessica Conflitti

Jessica Conflitti

Jessica manages content creation, PPC and SEO for Real Wealth Network. She joined our team part-time in August of 2015 and quickly moved to a full-time position to write for the blog and to oversee our independent researchers and analysts that help keep RWN on the cutting edge of investor education. In her free time, Jessica enjoys writing music, baking, meditating, and spending time with her friends and family.