Real estate is one of the most time-honored investments. While businesses come and go, and stock and bond investments fluctuate, real estate has stability that continues to make it a uniquely attractive form of investment.

If you are a small business owner or entrepreneur, you may have considered a real estate investment and balked. Perhaps you are unsure where to start, or maybe you feel that you are too heavily focused on your primary business. But whatever your situation, there are benefits to real estate that just should not be ignored.

Read on to learn a little bit more about what makes a good real estate investment, and how to get started on your own.

Stability

As described above, real estate tends to have a unique stability that is not always found in other investments. Barring extraordinary circumstances (major market downturns, significant local changes, tax assessments, and so on) real estate does tend to hold its value pretty well over time. It can be a good haven for funds in market downturns, for instance, holding a steady and accruing value that can be capitalized on later.

Potential for Additional Income

Real estate is not just stable on its own; it also can often be a source of additional income, both passively and actively. A residential property can be rented, or fixed up and “flipped,” for a sizable profit. Commercial property can yield steady and reliable rental income.

Raw land can make a great investment over time, both for things like mineral and timber rights and for its future development potential.

Leverage for Future Investments

Real estate’s value can also be helpful as collateral, allowing you to take on further investments by borrowing against a given piece of property. In this way, an asset can serve as a stepping stone to a larger investment portfolio.

What To Know Before Investing

These benefits may sound great, but you might still be concerned about entering a new field. While caution is always warranted, a few practices can help you at the outset. For instance, it’s important to:

• Learn about the field, especially by consulting with property owners and realtors.
• Understand local tax circumstances and potential future developments.
• Have a clear sense of your loan options and a realistic repayment plan.

With some careful planning and sound strategizing, a real estate investment can yield substantial rewards for years to come.