How big is the enthusiasm around real estate investing? Very big. According to a recent Gallup poll, real estate beat out gold, stocks, and other investment vehicles as a solid winner for the best long-term investment. And why wouldn’t it be? Investing in real estate carries a host of potential upsides, including the opportunity to earn significant returns, and potentially an earlier retirement.
On average, real estate investment deals’ net return on investment (ROI) is around 8.6 percent. However, depending on the type of real estate involved, the ROI could climb significantly higher. According to Yahoo Finance, private equity real estate funds have generated average returns ranging from 17.4 percent to 25.6 percent over the past decade.