In an article by Debbie Dragon on a financial website, there were five of the most common excuses listed for not invested.  The first excuse from her insightful piece, "5 Excuses that Prevent You from Investing" was "Why Aren't You Investing?"excuses not to invest in real estate which details the overall fear and apathy of many.  For those, and all others, that is the reason to passively invest in real estate for the long term.

Under the section excuse number one, Dragon states that, "Remember that the average savings account is currently paying less than 1% with inflation at 3%, while the stock market earns about 10% each year.  Investing is always a risk, but being too safe can actually ending up costing you more."  

Investing in something else other than real estate is "what can actually end up costing you more."

Over the past two hundred years, real estate investing has created about 90% of the world's millionaires.  This continues today with experienced professionals with a lengthy track record of success throughout all market conditions continuing to do well.  Jerry Cohen, President and Founder of EquityBuild, a real estate investment firm, has participated as a principal in more than two thousand transactions dating back to 1984.  His returns have been an average of 17% for transactional deals (buying and selling properties for profit) and 12% for investing in private mortgage notes.

In addition to higher returns, real estate has proven itself when other asset classes fall short.  During The Great Recession, as stocks and bonds plunged in value, rental income from real estate actually rose in the United States.  Historically, rents in the United States increase about 5% annually, doubling in less than 15 years.

By contrast, it would take a savings account more than 72 years to double with a return of less than 1%.

For those who are timid about investing and want stay away, that is the ultimate reason to buy real estate.  Not everyone has to own a stock or bond, but we all need somewhere to live.  For those who are too fearful, for whatever reason, to buy their own home, that is all the more reason to invest in real estate so you can rent to them!

If you do not want to own real estate, than finance private mortgage notes.  Those are loans that individuals or groups make to those seeking the capital buy properties.  Individuals can fund private notes on their own, or participate with a consortium of other investors.

If there are still concerns about making the move to invest, buy real estate and put it in your retirement account.  As real estate in a retirement account cannot have a mortgage there are no concerns about ever missing payments and being foreclosed on: that is the ultimate in risk management.  Even better is that all rental income and gains from selling real estate is tax free, when the property or private mortgage note is part of a retirement account.  A retirement account also has more flexibility, which is important for any investment asset.

Whatever the excuse for not investing, there is a reason for owning rental real estate or private mortgage notes.  Holding real estate in a retirement account makes the asset even more lucrative. As a passive investor for the long term, time is on your side along with many other compelling reasons to profit from real estate as have 90% of the world's millionaires from the last two centuries!

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