How to Build Wealth through Private Investments

Building wealth is a major area of concern for everyone with money in the bank. It could be personal savings, profits from a business venture or simply inheritance money. Countless people are scratching their heads heeding mindless advice from a vast array of investment consultants and experts who exploit the position of ill-informed and amateurs who can be potentially lured into scams.

Pyramid schemes are a good example of biggest scams out there which the United States government urges citizens to watch out for. It is a scheme that is mathematically proven to fail. However, people are getting more vigilant and growing awareness of possible scams and schemes which are primarily designed to extort their wealth. Moreover, people are not encouraged to risk their capital in the volatile system of Wall Street, which is why many other investment outlets are emerging on top with big potential.

If you have a few thousand or hundred thousand or million dollars in the bank, you would be constantly looking for an outlet where you can invest capital and reap profits. It does not work that simply and just as Warren Buffet puts: “Never invest in a business you cannot understand”.

There are a large number of investment opportunities out there, varying from one market to another. But not every option floating in the market is suitable. Before making an investment, one has to assess and carefully evaluate their position in terms of a scaled profit margin, time until return, ROI associated with each option, market conditions and trends, and of course, some general facts about how the business works. On the other hand, one also requires to carefully evaluate their own standing with respect to their own capital – its potential and a forecast of results of every step taken along the way.

Private investments are a considerably practical option that people are seeking to build wealth. It simply refers to acquiring capital assets that have a promising income potential. Not just that, these assets also appreciate in value over time. Capital assets are meant for investors who are looking to accumulate profits and build wealth. These capital investments can be land, buildings, equipment, etc. The private investment market is thriving when it comes to real estate with more and more investors channeling their investment to purchase or rent property. 

In the United States, one of the pioneers of private investment is Andrew Stuart Lanoie. He is the founder and CEO of Four Peaks Capital Partners and also the CEO of Park Place Communities. Andrew’s firm works with smart investors who have realized the opportunity lying at the disposal of private investments. Andrew, the former talent agent at William Morris Agency himself endorses the real estate market to be invaluable in the potential for growth and favorable returns.

Real estate remains the best outlet there for amassing profits from investments. If you are an investor looking to accumulate wealth and seek a viable channel for your capital, then real estate in the private investment sector is plausible. Here’s how it works:

Demand is on the rise – The need for affordable housing space is galloping and stats are alarming. With income levels rising in the country, people are channeling their investments in extensions of the real estate sector. Mobile home park investments are growing popular among people who are not fond of making lucrative investments in larger properties. People are engaged in buying homes which have well maintained and good condition parks.

High returns and minute competition – Investing in the real estate sector is usually a one-off investment and the assets do not require a lot of maintenance. In fact, such capital assets giving an income stream makes it much easier to manage all expenses. Plus, any damages fall on our tenants if you introduce this clause in the contract. Income is stable, streamlined and consistent which makes a good case why real estate is a great investment outlet. Since the market is large, opportunities do not run out and you cannot be beaten out by an investor looking to invest more than you are willing to. There are always alternatives to cater to your investment and you are never left out with remote options.

Stability and control – The market remains stable even during economic downturns. It is often said that the real estate acts as a hedge against inflation, which in theory means that their value increases as the general prices rise in the country as opposed to other investment outlets like bonds which decline in value as CPI (consumer price index) rises. Inflation happens in every economy and due to geopolitical conditions, it can increase at a rapid rate and it is one situation no investor would like to be in because it practically means losses. In addition, the real estate sector is not prone to market fluctuations and do not suffer through everyday market crashes, unlike the stock market.

Tangible asset – Your asset has a physical presence and should anything happen to the market and economy, you still have a property which you can sell off or turn into an income producing machine when conditions settle. Buying stocks always follow risk of losses when the market collapses and stocks plummeting. Real estate remains unchangeable.

The trend is favorably shifting towards real estate in the category of private investments because more and more investors have had enough of the unpredictability and instability of other options in the market.

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All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
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