If you want to begin creating a real estate portfolio that is lucrative, but not flashy, there are many ways you can do it. However, recommendations for the professional property investors suggest focusing on these six areas if you want to make your first investment a successful one. Here are six ways you can invest in real estate the smart way.
1. REITs
Real estate investment trusts are an excellent way for beginning investors to create a portfolio. Much like mutual funds, the groups are companies that own the real estate by means of their investors. You can buy into the group, and in return, you will receive dividends on the property you helped purchase. Most claim the dividends are high, and that can make them a valuable first-time property investment.
2. Single Units
Buying homes and renting the units out has been around for centuries. Land barons were smart when they purchased properties that required people to pay money for the right to live in the building – and you can do the same thing. Manage the property yourself or hire a property management company to do it for you.
3. Multiple Units
From a giant apartment building to side-by-side condos, the world of multiple unit real estate is growing as the nearly 90 million GenZ population look for housing. Steven Taylor is a successful landlord of multiple units in California, and he stresses that understanding investment properties is at the base of successful ownership of assets. So, if you want to buy a multi-unit property and live in one of the rooms, you would be investing in this type of unit.
4. Business Units
Most business owners don’t own their own buildings; instead, they rent a certain amount of square feet from a large commercial building owner. If you are interested in this type of property ownership, be aware that both appreciation and income can come from this type of commercial purchase, but you may have a significant turnover and default rate as businesses close.
5. Warehouses
Industrial warehouses can be costly investments, so if you don’t have that type of money available, there are other ways you can capture the properties for your portfolio. There are private equity firms like Taylor Equities that can help you join a group to invest in million-dollar transactions. Check out your options and understand the investments before you contribute to the group.
6. Land
Although vacant land isn’t an exciting investment, and it doesn’t come with income, it can be a great asset. The reason most people love having vacant property ownership rights is that it is almost maintenance and management free. If you own land and do decide to sell, you can finance the property sale and make great money.
No matter how you choose to invest in buildings, commercial property, or land, you can build a rock-solid investment portfolio you can be proud of. Securing your future by generating passive income can make sure your family’s future is secure. Why not begin today?