There are all kinds of roads available to those that are considering
real estate as a possible method of investing in the future. And why on
earth shouldn't you? This is one way that millionaires around the world
will agree to build a massive fortune quickly. At the same time, real
estate can be a very risky venture for business so you need to have a
few more stable methods of bringing in money in order to have a truly
diverse portfolio and a better security system for your financial
future. Even within the world of real estate investment you will find
different manners of investing that each bear different risks.
Commercial real estate is a fine place to begin because it is rather
secure when compared to some of the other forms of real estate
investing. The drawback with commercial real estate is that it requires
a massive investment to begin with. This is something that many real
estate investors do not even consider until they have built a sizable
portfolio and have plenty of money to risk. It is stable because most
businesses that lease from you will want to lease on a long-term basis.
This means that when you get clients, businesses prefer to stay in one
location as long as possible because it's bad for business in most cases
to constantly be on the move, they tend to stay a while.
House flipping. This is becoming a common kind of real estate investing
and many people have discovered that this is also a great way to make or
spend money very quickly. This is a high-risk venture to say the least
but the rewards are equally high when a flip goes well. You will have to
decide for yourself if you are willing to take the gamble as house flips
are part skill and part luck.
Residential rental properties. Becoming a landlord, while perhaps not as
showy as owning business properties throughout the city or flipping
great properties for instant profits is a great way to work yourself
into a rather comfortable retirement. This is a long-term type of real
estate investment but the payoffs can be rewarding when all is said and
done. For the cautious real estate investor this is a worthy type of
real estate investment to pursue.
Pre-construction real estate. Pre-Construction profits are even more
hazardous than house flipping in many instances, especially as it has
become so popular in recent years. The trick with this kind of
investment is finding the right property in the right market. If you can
get in a city that is about to have a serious housing shortage or is in
the beginning stages of a housing shortage (such as a few desert and
coastal communities have experienced in recent years) you stand to make
quite a fortune for yourself. The problem is that this field is highly
speculative and very competitive.
Lease or rent to own purchases can often bring greater profits. For many
real estate owners this is preferable to straight up renting for many
reasons. First of all, those who hope to own their homes are much more
likely to take better care of their homes than those who are just
renting. This means that even if for some reason they decide to move
elsewhere and do not complete the purchase you are less likely to need
extensive repairs before you can move along to the next client. You can
charge a little more than rent applying a certain amount of the monthly
rent to the purchase price or down payment of the home, and you can
actually be helping a family that might have hit a trouble spot along
the way to achieve the American dream of home ownership.
Real estate investing is a great way to build up great fortunes. You
must decide where you want to begin your journey into this lucrative
field however. Remember that once you've begun your real estate
investment career it is a good idea to utilize more than one type of
investment for the sake of diversity and spreading the risks, as this is
a volatile market at best.
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