Usually, as entrepreneurs, we have our heads down, in the weeds, grinding away on our businesses. Even though my first love is business, I have always made investing in real estate a priority. I’ve been a real estate investor for over a decade now, and it’s served me very well in addition to the work I’ve done in growing and scaling my businesses. Here are ten reasons why every entrepreneur should also be investing in real estate:

1. Diversification

Investing in real estate can diversify your portfolio and reduce overall risk. It can also serve as a great rainy-day fund and a place for you to dip into equity if you need cash and collateral for your businesses. For example, when I first started in business, most of my net worth was tied up in ownership shares of the companies. Now, most of my net worth is tied up in the real estate I own, along with company shares. Owning and growing a healthy real estate portfolio helps provide diversity within your business portfolio and income streams and helps hedge your bets against volatility from the market or your business.

Related: 6 Advantages of Real Estate Investing for Savvy Entrepreneurs

2. Massive potential for appreciation

Real estate can appreciate in value over time, providing a potential source of long-term wealth. For example, for the first property I purchased back in 2011, I paid $310,000. Last year, it was appraised for $749,000. That was just on one property. The appreciation you gain in your real estate portfolio provides a great well for you to dip into if you need emergency funds for your business or if you need to show additional collateral to obtain a bank loan for your business.

3. Cash flow

Having extra cash coming in from another stream of revenue never hurts. Rental income from properties can provide a consistent source of cash flow for business owners, in addition to the income from your company. You never know when you’ll need extra funds for a business acquisition or some sort of pivot that may happen within your company. Having an additional income stream from your rental property can only help you in your business endeavors.

4. Tax benefits

Real estate investments can offer various tax benefits, such as deductions for mortgage interest and depreciation. For example, I am able to deduct the interest paid on a mortgage for a rental property from my taxes, which ends up lowering my overall tax bill. Additionally, I also take depreciation deductions on real estate, which helps to lower my taxable income. As your business grows and your income grows, having helpful, strong tax deductions from your real estate investments consistently come in handy for you to keep more of your hard-earned money.

5. Inflation hedge

Real estate investments can act as an inflation hedge, meaning that they can protect your wealth against inflation. As the value of money decreases over time due to inflation, the value of real estate tends to increase, helping to preserve the value of the investment. As business owners, we are always looking for ways to maximize our money. Inflation literally evaporates the value of our hard-earned dollars and having a healthy real estate portfolio simply helps you to hedge your bets.

Related: 5 Reasons Why Real Estate Is a Great Investment

6. Tangible asset

Unlike stocks or other types of investments, real estate is a tangible asset. You can physically see and touch the property, and you can even live in it if you choose to. This can provide a sense of comfort for many entrepreneurs, especially those who may have experienced loss in the stock market.

7. Opportunity for hands-on involvement

Real estate investment provides entrepreneurs with the opportunity for hands-on involvement. You have the option to manage the property yourself, hire a property manager or even partner with other investors to share the responsibilities. This hands-on involvement can also help you to understand the real estate market and identify potential investment opportunities.

8. Networking opportunities

Real estate investment can also provide entrepreneurs with networking opportunities. For example, you can connect with other real estate investors, real estate agents, contractors and property managers. These relationships can be beneficial for your business in various ways, such as identifying potential acquisition targets, finding new customers or even finding new business partners.

9. Potential to generate passive income

One of the biggest benefits of real estate investment is the potential to generate passive income. This can provide business owners with additional financial stability, especially during tough times. This passive income can also be used to grow your business, whether it be by hiring additional employees, investing in new technology or expanding your product line. I have also been able to show that passive income as additional income to qualify for debt opportunities for my businesses.

Related: 5 Tips for New Investors Who Want to Make Money With Real Estate

10. Legacy building

Finally, real estate investment can also serve as a means of legacy building. By investing in real estate, you are not only building wealth for yourself, but you are also creating a legacy that can be passed down to future generations. This legacy can provide your family with financial stability for years to come and can be a source of pride and accomplishment. It also just adds to the legacy you’re already building through your business.

Whether you are a seasoned entrepreneur or just starting out, investing in real estate can provide you with the stability and additional security you need to grow your business and achieve financial success.