The real estate market in New York is hot. In October 2021, the New York Times reported that apartment sales in Manhattan reached a three-decade high with 4,523 closed sales. Experts say the surge is just the result of the market playing “catch-up” after being put on hold because of the coronavirus.
Regardless of why the market is booming, it’s booming, and that means entrepreneurs are getting in on the action.
Entrepreneurs typically prefer real estate investing
It’s hard to find an entrepreneur who hasn’t at least thought about buying real estate, although a large number are already investors. Real estate is one of the most lucrative, long-term investment options so it makes sense that it would appeal to entrepreneurs.
While some people stick with renting properties, others get their real estate license online and learn how to close real estate deals. Closing your own deals means you don’t have to pay agent fees because you are the agent.
Real estate profits can be quite large
Entrepreneurs go for big dreams and many of those big dreams center on large profits. In real estate, profits can be enormous, ranging from a few hundred dollars each month in rent to tens of thousands of dollars for a single sale.
Although rental profits start small, they get much larger when the mortgage is paid off. However, rental property isn’t the only way to make money in real estate. For example, some people buy underpriced homes to fix up and flip for a large profit, while others invest in real estate investment trusts (REITs).
Entrepreneurs enjoy passive income
Nobody likes passive income more than entrepreneurs. Most entrepreneurs set goals to generate as much passive income as possible. They’re not trying to be lazy, they know how to play the game. There’s nothing easy about real estate investment, although the principles can be quite simple. It’s hard work all around. However, at a certain point, it becomes less demanding.
Entrepreneurs want multiple sources of income
MSIs—multiple sources of income—are highly desirable to entrepreneurs. When those MSIs are passive, that’s even better. Real estate provides the best of both worlds: passive income and an additional source of income.
Once a mortgage is paid off, the rent becomes pure profit after expenses. Real estate is also something anyone can do on the side, which means entrepreneurs don’t have to give up their day job to invest in property.
Have you considered investing in real estate to generate more income? Having multiple sources of income provides many important benefits , including:
· Financial stability. When your income is derived from multiple sources, you don’t get knocked off balance when one source is impeded or dries out.
· Financial security. Having several sources of income provides security in the sense that you aren’t dependent on one person or company to provide your income. You are in control of how much you earn and you can add another source whenever you want.
· Supports developing financial independence. Everyone wants financial independence, but few are willing to work hard to achieve that goal. For entrepreneurs, financial independence is always a priority and having MSIs is one of the best ways to achieve that goal.
· Helps an entrepreneur scale faster. Let’s face it, when you have money you can get more done. When an entrepreneur wants to scale their business, they need money. Having multiple sources of income provides a greater opportunity to invest more and scale quickly.
· Allows for traveling or working from home. When you aren’t tied to a corporate office you have the freedom to travel or work from home. This freedom is ultimately what most entrepreneurs are after. The more sources of income you create, the more freedom you’ll have.
While some say money isn’t important, entrepreneurs know it’s a tool and are willing to work hard to generate it from multiple sources.
Real estate investing is a lifestyle
Many real estate investors have made investing a lifestyle in addition to a business. You can almost tell who is an investor just by looking at how people carry themselves and the way they dress.
Aside from those who recently inherited a fortune, it’s safe to say that most wealthy people own at least one investment property.
Are you a NY entrepreneur? Consider buying property
If you’re an entrepreneur stationed in New York, consider getting into real estate. You can start slow with one or two residential properties to get a feel for the industry. Although, if you want to be hands-off, you can always hire a property manager. Either way, you’ll make big money if you play it right.