Summary: In this episode Marco discusses why real estate is the IDEAL investment.<br> <br> Real estate is the most historically proven wealth creator.<br> <br> <br> <br> In the episode we discuss what makes real estate the IDEAL investment. We break down the five major elements of real estate and discuss when the best time to be investing is.<br> <br> - - - - - - -<br> Subscribe on iTunes and Stitcher so you don’t miss an episode!<br> <br> Please remember to RATE and REVIEW our show to help share the word.<br> <br> Get your FREE copy of The Ultimate Guide to Passive Real Estate Investing.<br> <br> <br> Why Real Estate is the IDEAL Investment<br> Welcome to Passive Real Estate Investing. I'm your host Marco Santarelli. This is the show where busy people like you learn how to build substantial passive income while creating wealth for the long term. If you're new to the show, I encourage you to go back and listen to the first two episodes. I cover some foundational and introductory information there. If you're joining us again, welcome back.<br> <br> <br> <br> Why is real estate the ideal investment? Real estate has been the most historically proven wealth creator. More people, especially people in the middle class, have become millionaires and billionaires through real estate than any other investment in history. Back in 2012, Warren Buffett was interviewed on CNBC's Squawk Box and he said, and I quote, "If I had a way of buying a couple hundred thousand single family homes, I would load up on them."<br> <br> This really got a lot of people's attention, not just on Main Street but on Wall Street. In fact, since then, there have been a number of hedge funds that have come up with billions of dollars and invaded many markets across the country, starting with places like Phoenix moving east to Dallas, Houston, Atlanta. They just came in and they started buying up all they could possibly buy. They really didn't care about the rates of return as much as the fact that they wanted buy at a "low price" and just build up a portfolio.<br> <br> The problem with buying real estate at the institutional level and on such a grand scale is that it's very difficult to do. This market, the real estate market, is a very fragmented market. It's a fragmented industry. Every real estate market is local and every market has its own real estate agents and brokers. It has its own set of property managers and inspectors and whatnot.<br> <br> It's very difficult to manage this as an investment on a grand scale. But that's really an advantage for us as a real estate investor. We can take advantage of these inefficiencies of scale, this fragmentation. It helps us as real estate investors because it allows us what used to be called mom and pop investing. It allows us to really build a large business out of it or a really large real estate portfolio for ourselves so we have that passive income through the cash flow.<br> <br> Real estate is made up of many elements. It is not a simple one sided type of investment. Because of that, it makes real estate an ideal investment. Let me break that down. Why is it an ideal investment? Ideal is not just an adjective for real estate, it's also an acronym. Each letter in the word ideal represents a major benefit or factor of real estate.<br> <br> <br> <br> The I in ideal represents income. Income is probably the most important ingredient when it comes to real estate or any investment for that matter. Because if you don't have cash flow from an investment, it really isn't much of an investment in my book.<br> <br> Not all investments provide income. If you were to go out and buy, let's say, $100,000 or $10,000 worth of stock from the stock market, unless you bought a blue chip company stock that pays an annual or quarterly dividend, there really isn't any cash flow, there is no income.
