The real estate and housing market has recovered immensely over the last decade after the crash in the late 2000's. This has led more and more people to consider investing in real estate as the returns can be healthy over a long period of time. The financial goals of an investor are the most important factor in making these types of decisions with your money. Listing out what you want out of an investment can lead you to research certain types of investments that you have never heard of before.
Flipping Homes
Flipping homes has become more popular than ever as there are seminars as well as other courses that teach people the intricacies of flipping homes in any market. Finding a reliable investor to help back the project is needed by most people without large amounts of money to throw around. The right investor will have trust but there are some that will be pushy which can force a flipper to do a poor-quality job renovating a space as their investor wants the return immediately. Homes can also come with issues that even the most thorough of inspectors will not catch due to them being hidden.
Investment Properties
A residential investment property could be one of the most popular investments that individuals make in real estate. There are families that purchase a vacation home only to rent it out during the times they will not be there. An investment property can also be a property that is just rented out by others. Finding a home that will bring in a healthy amount of rent in an area where property prices will continue to increase is the perfect balance for an investor. The right income property can provide an immense amount of return through rent then an even larger payout if the owners ever consider selling.
Crowd Funding Investment Sites
The best real estate crowd funding sites give people that opportunity to invest money even if it is not a large amount. The ability to be able to put a few hundred or thousand dollars into an investment that will only grow is appealing to a large number of people that have extra money they earn monthly. This does not limit the investor to a particular type of property as this could include commercial spaces, apartment buildings, and even purchases like that of parking garages. Do not think that you cannot invest in real estate but you might need to take this tech-friendly less traditional route that can still provide the return you seek. Financial tech influencers can be great to watch as they tend to have insight on which investing and crowdfunding platforms really deliver for investors. Other influencers like Gary Vaynerchuk can also help see trends before they happen with a 2011 interview predicting Amazon would all but take over the world.
Commercial Property Investments
Buying up a large portion of lush farm land can lead to quite a bit of return if a particular cattle farmer needs extra space for their livestock. In the same sense, purchasing a commercial building to rent out office space can lead to years of returns. The most important thing to consider is that of location as most businesses want to be in a decent location for what they are providing. An advertising or marketing company might want to be downtown with access to a variety of businesses that they might meet with weekly. A property management company NEEDS to be hired for these properties as businesses can shut down overnight in some cases. A good property manager of commercial properties will ask to see the financials of a company before entering into an agreement. Financially healthy companies are perfect renters as the payment will come on time and they could rent the space for years to come.
As you can see there are various options as well as thing to watch out for when investing in real estate. Take to time to see which option works for you as well as your overall financial goals!
