Business vs. Real Estate: What’s the Key to Investing?

Every day, more people are venturing into entrepreneurial activities. Some are driven by wealth building potential, others by wealth recovery, and yet some by sheer curiosity.

The real estate boom that has spread throughout America has fostered a great deal of attraction.

On the other hand, others look at assisted living business opportunities and wonder if they should take that route.

The prevailing question: Should I focus on real estate or aim to own the business? This is a dynamic decision.

Owning a business as opposed to real estate requires one to consider:

  • Available time
  • Time to generate income or capital
  • Available capital or credit
  • Risk tolerance
  • Income goals
  • Wealth building strategy
  • Investment portfolio needs

Perhaps you should start by considering both. Does such an option exist? Well, in a word – yes.

DEFINE YOUR GOALS FOR OWNING A BUSINESS VS REAL ESTATE

Prior to examining the option to own a business, a real estate investment or both, take a moment to ascertain your true motivations and needs. In other words, ask yourself, “Why am I contemplating this? What is driving me to consider these options?”

Doubtless, the response of many is wealth and all of its various names, activities, and desires. People are building wealth for retirement, generational wealth, further investment, debt alleviation and philanthropic activities.

Regardless of which of these or some other motivation, be sure to understand what type of wealth building activities you can honestly take on at this time in your life.

Be honest about your capacity, knowledge and willingness to learn.

REAL ESTATE INVESTING

Investing in real estate is a multifaceted undertaking. Real estate provides both short and long-term investment potential.

The short-term potential is realized in its income potential through rental and/or leasing. Its long-term potential is realized through appreciation of the actual asset.

For most real estate investors, stocking away an investment for a rainy day is not their cup of tea. People invest in real estate for its income potential.

As such, we will focus our attention on the goal of investing in real estate for income potential.

THE RIGHT INVESTMENT WILL CONTINUE TO APPRECIATE

Assets tend to come in two forms: real and paper. A real tangible object such as a house, commercial building, or land.

Paper assets are details of an inanimate ownership in an enterprise such as stocks and bonds.

Real estate is a real asset – it is tangible. As such, its presence tends to hold a greater appreciation in the eyes of investors because the everyday person can identify with it, and its value is usually less volatile than stocks.

Real estate also offers the investor control over their investment. Unlike equity investments, real estate can be bought, sold, painted, expanded, divided, repurposed and the list goes on. Real estate holds such a useful function for consumers that it tends to appreciate over time. For example, people need a place to live.

Businesses need a place to conduct activity. Cattle, sheep, chickens and even goats need a secure place to graze.

Real estate offers so much to so many that its value is strong and mostly appreciative over time.

Furthermore, the short-term fluctuations of the stock-market have little to no effect upon real estate. The two markets rarely cross paths unless mortgages come to the forefront.

Even so, if an owner must forgo a piece of real estate due to mortgage, the value remains and is passed to the next owner.

Real estate is real.

OWNING A BUSINESS

Owning and operating a business is a diverse enterprise.

One can build a business with immense amounts of sweat equity and capital. Another may purchase a franchise, a business with a process that guarantees profit, and put all their efforts into it.

Businesses can also be passive in nature depending on the type and the role of an individual.

If the business is a part of an investment portfolio, the owner’s ability to outsource management is central to its success.

Additionally, the type of model chosen determines the amount of time and capital investment required.

Owning a business is prone to local market conditions that may affect operations drastically.

So, once again, the question is posed: have you considered both?

THE GREAT MARRIAGE

Recreating the wheel is a fruitless enterprise. Why? We’ve all got the plans already. Why recreate or re-engineer what is plainly known by experts.

Investors forecast what will be needed in the future. If you are seeking an opportunity that is historically sound, presently understood with future potential, you need look no further. The marriage of real estate and senior living is the answer.

It’s called Residential Assisted Living.

No longer do you have to balance the risk between one over the other. You can have both, a better marriage. Why?

1. The Baby Boomers

They are not just coming; they are already here, with 10,000 seniors turning age 65 every day. The most revolutionary generation in American history, the Baby Boomers, are now entering senior living in Boomer fashion.

That’s right.

Baby Boomers want senior assisted living the way they wanted childhood, adolescence, young adulthood, and adulthood.

Independence, dignity, strength, activity and community fuel this generation. They reject traditional senior housing and want a house on the hill with a garden in the backyard. This is why the solution for this generation is Residential Assisted Living.

2. Real Estate

There is no need to go and build monstrosities to house hundreds of people. That is a rather poor concept, especially considering the present pandemic.

Instead, homes in established neighborhoods will do just fine. Boomers can live as a family unit in a home repurposed for their needs.

Long-term investment potential exists as the property bears a value presently and will most likely increase in value over time.

Short-term investment potential exists in that the residents pay fees – cash flow. As a real estate investment, the investor gets the best of both worlds.

3. The Business

The residents do more than sleep here. They live and thrive here. In other words, their needs must be met through various activities, customized meals, physical therapy, occupational therapy, and the list goes on.

All of these services constitute a business opportunity.

Baby boomers love aging this way because it’s on their terms. Boomers have stated this desire in study after study.

The investment is secure because the population and the need is ever present and will remain present for many years to come.

RESIDENTIAL ASSISTED LIVING ACADEMY IS THE KEY TO HAVING IT ALL

Details about how this marriage works can be found at the Residential Assisted Living Academy.

Do not miss the opportunity to learn everything from A-Z about assisted living.

So, what’s the final verdict for investors, owning a business or real estate? The answer is you can own both.

Who says you have to choose when you can have it all?

You can offer a desperately needed service for an industry with demands that are backed by generations of demographic data.

Data shows that this trend is not only going to continue, but it will be in even greater demand for the next few decades.

An investment where you own the real estate and the business, both of which appreciate in value.

Owning and operating a business is all about cash flow. Providing a solution to somebody’s problem generates income that can last for a lifetime.

With residential assisted living, you get to “Do Good and Do Well” by creating great housing solutions for seniors while also producing significant cash flow.

At Residential Assisted Living Academy, experts teach students how to create cash flow from real estate, business, or both.

The Silver Tsunami of seniors is coming, and you don’t want to miss out on this opportunity.