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Real Estate Investment Strategies

Real Estate Investment Strategies

What is Real Estate Investment?

Real estate investment involves the buying, holding, possession, control, rental or sale of real estate as a part of an overall real estate investment plan. It is the buying and holding of a piece of real estate, whether it is land or buildings, for the purpose of improving its value in anticipation of selling it later. Property improvement of real estate as a part of your real estate investment plan is normally thought of as a sub-specialty of real estate investment known as real estate development. In some cases, it is also possible to make money from real estate investment by using it as a rental property. A number of other ways to make money through real estate investment include the financing of residential remodels, improvements of existing homes, the leasing of commercial spaces, and renting out apartments and condos to residents.

Investment Properties

There are many ways that real estate investors use investment properties and financing techniques to make money. Although they all have different reasons for doing so, they all usually have one thing in common. They all need to raise capital for their projects. This can be done through a number of ways such as borrowing money from family and friends, getting a credit card with a low interest rate loan, or getting a personal loan from a bank. Commercial banks are probably the most common lending sources for real estate investors. But there are a number of other ways that investors can get commercial funding.

How Do Real Estate Investors Make Money?

Many real estate investors make money by investing in rental properties. Rental properties are those that are not used exclusively as rental units but are actually owned by the tenant and are rented out on a regular basis. Properties such as vacation homes, townhomes, and other such residential properties are sometimes used for this type of investing. The positive cash-flow potential of a rental property makes it an attractive investment for both the tenant and the investor. Investors will usually make a profit on their investment in a short period of time because they will receive the rent that is paid on a monthly basis.

Real estate investors may also choose to invest in a portion of a multiple unit apartment building. When these investments are made they will often purchase just part of an apartment building rather than owning the entire property outright. Investing in part rather than purchasing all of the apartments in an apartment complex allows them to control the building’s rental prices. This gives them a chance to stabilize and raise the rents in a way that will allow them to earn a profit as tenants continue to pay the positive cash-flow associated with the property.

Other real estate investment strategies include purchasing tax lien certificates. Tax lien certificates are essentially the property rights that the government has sold in an auction to raise funds for public services or for specific projects. When you invest in tax lien certificates you become the holder of the property and have the right to have the property’s value increase or decrease based upon the performance of the property.

Conclusion

Real estate investment can be lucrative but requires patience and a steady income. Investing in properties for long term income can prove to be extremely complicated and challenging. Most investors will opt to start with one small investment and then gradually build their way up from there. One of the best ways to invest is through k-1 mortgages. K-1 mortgages allow you to make low, regular monthly payments that will allow you to build your way up to owning a piece of property. In the meantime, you will enjoy the benefits of making an excellent income.

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