real estate investing

Real estate investing is a smart and comparatively safe investment which depend on the present market situation. In fact, it also depends on investors understanding of the market in which they would like to invest says Robert Clayton Southlake.

While investing in the estate is not for every individual. However, it can be very profitable. In fact, a lot of people have made millions investing in a real plantation. Are you one of them and want to enlarge the investment horizons? If so then this is the right place for you.

Investing in real estate

Here are some ways of investing in the tangible estate to get started with:

Direct Ownership

  • Single Family Homes:

    This is one of the best ideas of investment. You can buy a home and rent it out to a family.

Plus: Renters in single-family residences take care of the property better.

Minus: If tenant vacant the house, no income will come until it gets occupied again.

  • Apartment Building:

    You can invest in building with three or more units. Loan for such real estate investment is considered a commercial loan. And has a different set of lending standards, rates, and terms.

In this type of investment, investors can pool their capitals with professional operators and put together deals. Investors obtain a monthly/quarterly payment. However, an operator will take care of maintenance of a property.

Plus: Value of the property increases with good management.

Minus: A good management of the building is necessary. Therefore, it is sensible to hire a professional.

  • Self-Storage Amenities:

    Todays, individuals have more and more stuff and they require places to house it. Hence, Robert Clayton Southlake advice that it is good to think about self-storage facilities to invest.

Plus: No need to deal with tenant type problems.

Minus: Proper management is crucial. It’s like a customer service business.

REITs

Real Estate Investment Trusts is the best option for people who want the passive investment. This type of investment pays a higher dividend than the mutual fund for stocks.

Plus: Allow individuals to invest money in the high-end estate with professional management.

Minus: REITs correlate with the stock market and hence not endow diversification that investors look for.

Other Ways

  • Tax Liens:

    Every homeowner has to pay taxes. If individuals did not pay tax then government place a lien on their property. According to a real plantation professional Robert Clayton, if the tax remains unpaid, then individuals who own the lien can take ownership of property.

Plus: Potential for a good profit.

Minus: The investment process require knowledge and experience.

  • Fix & Flip:

    Fix and Flip house is a lucrative business but at the same time it is a bit risky. Since the market value upsurges, it is a good time to flip the house. Buy a home under market value, fix it up and sell for profit.

Plus: It is a profitable investment.

Minus: There is a little risk with this type of investment.

Wrapping Up

Robert Clayton Southlake has shared these ways of investing in property. There is a lot of variation in real plantation investments. With many investment types there is much potential, however, it does not mean that it is guaranteed gain. Hence, choose carefully and understand the potential risks of your actions before investing.

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