4 Types of Real Estate Investment You Might Not Know About
Real Estate Investment
Real estate investment is one of the oldest investment options. However, you can still earn good cash when you invest wisely in this industry.
You need to identify your passion and target audience to choose suitable options.
The list below outlines some of the real estate investments you might not know.
Real Estate Investment Trust (REITs)
In REITs, you buy shares in real estate corporations that are already established in the industry.
Here, you earn your income through dividends. You can be new into the industry and fear facing stiff competition from the already established members.
Since these corporations guarantee profits, you’ll be sure to earn through dividends. As a public shareholder, you’ll get more profits as the corporation gets more revenue.
On the other hand, you’ll earn your pre-estimated dividends when you are a private shareholder, even when the company makes losses.
Besides, as a REIT investor, you’ll not incur low tax rates as experienced by those who invest in common stock.
Fix and Flip
As technology increases, innovation gets better, and the real estate industry is not left out.
Better homes with modern finishing are being built. Therefore, those that have old designs remain unwanted and irrelevant in the industry.
As a real estate investor, you can identify this as an opportunity. Buying these homes and renovating them to current designs can be a good chance of creating revenue.
Of course, you’ll buy them at a lower price and sell them at a profit. You’ll have to identify the demands for your clients and implement them in the renovation of these houses.
Hard Money Lending
Financial service is an ideal way to create income since you’ll be earning through interests.
However, you’ll want something to hold on to as collateral. Hard money lending is an ideal investment opportunity since your potential customers will be bringing along raw land as a form of security for the loans you provide to them.
As a hard money lender, you’ll want to set your interest rates right, so it favors your clients, and at the same time, earn you profits.
Such raw land can include ranches, farms, and even metropolitan properties.
Owner-Occupied Rentals
You can decide to make extra cash from the property you live in. there can be additional land left after you complete building your home.
Or, you may want to build the property in the form of a flat, live in one of the apartments, and rent out the rest. It is a cost-effective option and would use the space sparingly.
Besides, you’ll incur lower interest rates on your mortgage, as this is the same property you reside in.
Investing in real estate is an ideal way to look for financial independence or get a passive income.
However, you’ll have to identify the right niche to earn you the profits, and above are the opportunities you can explore.
Category: Investing
