Getting into the real estate market can be a great way to use your savings to turn a profit, when I speak about investing in real estate I am speaking with regards to using it as an investment vehicle rather than buying a home or second home. Getting into the real estate market is something that requires a lot of planning, a lot of caution and most importantly a lot of knowledge. Before you begin buying up properties it is important that you understand the market and have strong knowledge about the properties themselves. Here are some areas on which you need to decide when getting into real estate.
Commercial Real Estate
Many more investors are now looking at commercial real estate as a more viable option for their investments, whilst the outlay is greater, so too are the returns and the monthly yields. Any type of property from office blocks to storage space, hotels to factories can be a great place to put your money and before entering into real estate you should consider the commercial side as one of your options.
Using a brokering company is one of the best ways to get involved in commercial real estate, not only do they know the market better than anyone else but they will handle all areas of your transaction from bid to buy thus saving you time and hassle. I use a great company called Welfont to handle my investments, they gained my trust very quickly and have helped me to make some great returns, take a look at the Welfont reviews to see for yourself.
Residential Real Estate
Getting involved with residential real estate is the more common option for investors, you will need less money to do so and as such there is less risk involved. Before you decide what you will be buying you need to decide what kind of real estate investor you will be, there are two main options.
Renting it Out
Buying property with the aim of renting it out is one of the most popular options for investors, this will tie your money up in a property but will give you a monthly return on your investment. If you buy cheap as a result of the market performing poorly then renting out your property is a great way to ensure that you aren’t losing money while the market recovers. Naturally, this method will require that you look after the property and your tenants or employ somebody to do so.
Flipping for Cash
Flipping houses for cash is pretty much the dream when it comes to real estate investment but it takes a lot of knowledge and a well prepared team. The most common way of doing this is picking up houses at auctions, renovating them with your team before selling them on for a profit. The faster the turnaround the better when you are flipping houses although this can often be hampered by the failure to sell the house that you have quickly. This form of real estate investment requires the ability to sniff out a bargain as well as a very good understanding of the market.