Why Ido Fishman Calls Real Estate the Best Form of Investment

When you want to be an investor, the first thing you have to deal with is the type of investment you will be doing. There are hundreds of ways to invest your money into something. Some methods require technical knowledge while others don’t. In some investments, you have to put a lot of money in right from the start while others require only a few hundred dollars to put you on track to making a steady income. Among many other types of investments, you have real estate investment. It is considered one of the best types of investments in the world.

However, if you are new to investments, you might not trust that it is the best form of investment right then and there. If you require some proof to believe that statement, there is nothing more believable than words coming from an investment and finance expert like Ido Fishman. Ido Fishman considers real estate investment as the best form of investment, but it leaves you with the question, “why.” Let’s dig deeper to find out.

Why Real Estate Beats All Other Forms of Investment

It Is There Forever

One of the first things you have to know about real estate investments is that real estate is there forever. For as long as humans live, they are going to live in homes. At the same time, the need to earn money to make ends meet is going to keep humans constructing new buildings and offices. In short, whether it is commercial or residential real estate, none of them is going anywhere for as long as humans are living. On the other hand, you cannot say the same for other types of investments. Let’s talk about cryptocurrencies, for example.

Cryptocurrencies are there to replace all other forms of currencies in the world. However, you can still not be sure that they will be around forever. The way cryptocurrencies are being produced with so much computer power, it does not seem likely that they will be able to survive on a planet where people care about environment and atmosphere. At the same time, cryptocurrencies are almost always surrounded by some negative sentiment. Regulations are the biggest enemies of this market. If you are investing digital currencies, they might disappear at any time and leave you scratching your head in awe.

You Can Touch It

Real estate investment is real i.e. you can touch it. That’s not the case with every other type of investment that is available to you. For example, if you invest in stock market, you can buy shares of a company. Yes, the company is there but the shares do not have any tangible value. Similarly, when you trade CFDs with online brokers, you are only trading contracts. In fact, you do not even own the asset ever. This means, you are investing in something that you can’t even feel with your hands. That’s not the case when you invest your money in real estate.

When you invest in a house or commercial property, you can visit it and touch it. You can go inside the property to check it. You can decorate it, change it, and do whatever you wish to do with it. That’s something you do not do with any other type of investment. When you have a real estate asset, you do not just see the value grow but you can see the investment in tangible form whose value is growing in front of you. For this particular reason, real estate investment remains one of the favorite types of investments in the world.

You Can Keep It

If you think the market is not going in your favor, you can even keep the asset that you have purchased. You can do the same with other assets as well but the value of those assets is not as much as your real estate asset’s. For example, if you own shares in Apple, you can hold on to them for as long as you want. However, when you are holding on to them, you can only wait for their value to increase. In other words, the only time you will benefit from your shares is when you exchange them in the market and obtain the increased value in the form of profits.

On the other hand, your real estate investment can be used while you are keeping it. For example, if you buy a house for investment purposes, you can choose to live in it for as long as it does not sell in the market. So, while the house will produce value when you sell it, you will be getting huge value out of it even when you are keeping it. In addition to that, you can rent out some portion of the property to get some more value. This type of liberty is missing in most other forms of investments in the world.

You Can Understand It

There is a lot of jargon going on when you do other types of investments. The best example of jargon being present in other forms of trading and investment is that you are taught that jargon when you sign up with an online broker. Ido Fishman says that you will have to spend a month only learning the many terms that are using in the online trading market. If you are trying to be a CFD trader, you will have to learn the jargon of this trading style and that will take you about a month to master. Even then, you will only understand the meaning of those terminologies, not their significance.

When you invest your money in real estate, you know just about everything already. Ido Fishman calls it the comfort of familiarity. Your real estate investments are in the form of buildings, homes, lands, etc. You know these structures because you have seen them and been in them all your life. There is no understanding involved. When someone says a condo, you know what a condo is. When someone says commercial or private property, you already know what those are. Yes, there are some technical terms when it comes to dealing with the legal paperwork involved at the time of purchasing and selling properties. However, those terms can be understood within a day.

You Have Many Ways to Invest

You will not find many other methods of investments that provide you with these many ways to invest your money. When you talk to people about investing in real estate, they only think about a house that they can buy, keep for some time, and then sell on the market for a profit. Yes, that a way of investing in the real estate industry, but that’s only one of the many ways. You have dozens of other methods that you can use to invest your money in this market. Let’s take a look at some methods to learn more about them.

• Investing in a Rental Property

You can invest your money in a rental property. A rental property has tenants living in it. Your tenants give you a rent every month that you can use to pay off the mortgage on the property. If you have already paid off the mortgage, you can use the rent from the tenants for other purposes as well. If your rental home or property is located near a tourist attraction, you are looking at making thousands of dollars every month when there is peak season.

• Investing in a Piece of Land

You can invest in a piece of land and then sell it later for some profit. If you think there is a piece of land whose value will increase after some time because a highway is about to be built near it, you can buy it and do a lot of things with it later. You can sell it later for a high value when the area starts to get populated. You can start your own business on that piece of land when you think the opportunity is right.

• Investing in a Commercial Property

Commercial properties can be of many types. You usually require a lot of capital to invest in these properties, but they pay off well. If you can buy a big building with lots of offices and shop spaces in it, you can make a lot of money from it. The more businesses occupy space inside the building, the more rent you get every month.

• Invest in Home Flipping

According to Ido Fishman, this is one of the best, cleverest, and foolproof ways of investing in real estate. When you flip a property, you buy it, make changes to it quickly, and then put it on the market for selling again. You make as much profit as you can from this investment within a few months and then sell it on the market for a profit. The profit might not be huge, but it is still enough for you to invest in yet another property and flip it too. Home flipping is for people who like to make quick judgments with their money. If safety of your money is your first concern, you might want to stay away from this type of investment.

Ido Fishman has a unique take on this type of real estate investment. He believes that real estate flipping is all about doing more with less. Flipping is not as easy as it might seem to people at first. They think they can buy a property, give it a makeover, and attract buyers to buy it at a slightly higher price. The issue here is that when you are renovating the house, you have to make some detailed calculations. For example, you have to make sure that the amount you are investing in the property for renovation does not exceed the profit that you are speculating on it.

At the same time, if you have made some big investments in the property’s renovation, you have to find ways to make a big profit on its sale. In both cases, you have to be quick with your decisions and on top of your game to make the moves fast.

It Requires Little Money

This one might come as a surprise for you. One of the drawbacks that proponents of other forms of investments have always mentioned about real estate investment is its huge value. When you invest in a real estate property, you have to put a huge down payment on it. On the other hand, when you look at other forms of trading like CFD trading, ETF trading, Options trading, etc. you can start them with as little as $250. When you compare that amount with the down payment on a residential house, there is a huge difference. However, things are not the way they were before.

You can now invest in real estate without spending a lot of money. In fact, these methods have always been there but were not as accessible to people as they are today because of the internet. You can reduce the initial amount you require to invest in this industry by picking an unpopular route. For example, you can invest in REITs. In addition to that, you have mutual funds wherein a lot of investors pool their money to buy properties and invest in real estate. Not to forget, you have real estate ETFs as well that you can trade in financial markets.

Real estate crowdfunding is yet another new method through which you can invest in this industry without breaking the bank. Now that you have these options available to you from the comfort of your home, there is no reason to say that real estate investments require a lot of money upfront.

Bottom Line

When you look at all the points mentioned above, you have to agree with Ido Fishman that real estate investment is second-to-none when it comes to investment money safely. If such a famous finance and investment expert believes real estate investment is the best, there should be no doubt in your mind that it is.