How do you know if real estate investing is for you? The truth is that it’s not for everyone, but in order to find out whether it might be a good option for your hard earned income, we’ve underlined which type of people real estate investment most often appeals to and the types of real estate investment opportunities that are in the market today. Learn whether this type of investment is for you by reading more.
How do I know if I’m cut out for real estate investing?
Those who are simply not cut out for real estate investing are those who love to watch the ticker roll across the computer monitor or television screen indicating the worth of their portfolios on a daily basis. Another type of person who should probably not invest in real estate would be those who must see in print the wisdom of their investment practices. In short, if you aren’t content to sit on their investments as they take shape or those who are willing to actively work in order to make their investments pay off, real estate investment might not be right for you.
Types of Real Estate Investment
Buy and Hold: Buy and hold real estate involved purchasing property and holding on to it for a very long time while the value of the property appreciates in value. This requires someone that is very savvy when making purchases. More importantly however, it involves someone who has the patience and tenacity to hold on to their investments for a long period of time. These investments can provide a nice retirement for the right investor as well as funds at the proper time for the weddings of children or to pay for college.
Rental Properties: Rental properties are another excellent way to make money for those who are willing to deal with a long-term property investment. In this type of investment money is made each month to either pay or contribute to the mortgage and funds can be made once the property is paid for and sold later in life in order to receive a more complete and total profit from the endeavor. There is some degree of expense along the way that is involved in keeping properties up to date and in demand however the benefits of this particular type of investment are almost undeniable for the right investor.
Flipping: Flipping is another type of real estate investment that is receiving a large amount of press these days. This process involves purchasing a property below its value, investing in repairing or rehabbing the property, and then reselling the property for a substantial profit. This is one of the few short-term sorts of investment that are widely profitable when it comes to real estate investing. There are others but those carry even greater risks than flipping.
Pre-construction Real Estate: Of course there are high-risk real estate ventures for those that need a little excitement in their lives. One of the more common high-risk investments would be pre-construction real estate investing. With this form of investment the investor is actually ‘betting’ that the future property will sell for a higher price than the investor paid once the building is complete.
Turnkey Property Investment: Unlike flipping, turnkey property investment involves the investor purchasing a property that is ready to rent right away—which maximizes your passive cash flow and reduces your risk. Many professionals (among them a tide of millennials) are running to turnkey property investment because it doesn’t require the investor to be involved with managing repairs, vetting potential tenants or dealing or collecting rent.
Whether your investment needs are low-risk, high-risk, or somewhere in between, there is quite likely a style of real estate investment that will be appropriate for your specific investment needs. Real estate investment may not be right for everyone, but if you’re thinking about it, we’d love to talk you through the details and help you get involved. Contact us today to share your goals and we can help you figure out what plan is best for you!