When it comes to investing your cash there are few better ways to do so than in the real estate market. Sure you could put your money in oil, precious metals or blue chip stocks but these often come with a little more risk or lower returns than the real estate market. When considering investing in real estate there are many different methods to think about, different types of real estate and different types of ways to get a return on your investment. You could be a master of all trades and look to build a portfolio of various properties but when you first start out it is better to focus your efforts on just one type of investment. Here are some of the various ways in which you can invest your money in real estate.
Commercial Real Estate
Commercial real estate has been attracting more and more investors over the last few years, including myself. I use a brokerage company called Welfont who have been excellent, dedicating themselves to finding the type of property that I was looking for and taking control of all of the negotiations. I looked long and hard for the right company for me and after reading the Welfont reviews I decided that they were for me. The benefits of investing in commercial properties are that you can make larger returns through long leases and bigger profits on sales, the only downside is that you must have a larger amount of money in order to do so. The commercial market is not as saturated as the residential market which means that prices are much fairer on the commercial side of things.
Real Estate Trading
Real estate trading is something of an art form, buying cheap properties, renovating them and turning them over quickly for a profit is a great way to make money. This method requires a deep understanding of the market and what clients want as well as having an eye for a bargain. This approach is not the best idea if you are just starting out in the real estate game, wait until you have a strong understanding of the industry before trying to flip houses.
Buy to Rent
By far the most popular way of real estate investment is to buy properties in order to rent them out, this will give you monthly cash flow and a regular income before you look to sell the property on for profit. Most people simply charge enough rent to cover costs however there are many that tag a little extra on to the rental price for extra profit. Renting out properties requires you to look after them and as a landlord you have lots of responsibilities, you could alternatively hire an agent to look after your properties for you and pay for this by adding a little more on to the monthly rent. If you only have sufficient money to buy one property then all of your money will be tied up until you sell it, if buying multiple properties is something that you are looking at doing then consider loaning a percentage from the bank in order to purchase more properties to rent out.