The Stock Market continues to set all-time highs as investors react positively to President Trump’s promises regarding Tax Reform and Job Creation. 401K holders have seen a spike in the value of their portfolios and hope for continued growth. While many 401Ks have experienced a rocky ride over the last 10 years, Real Estate Investment continues to be a solid financial investment.
Damien Justus recently wrote an interesting article for RISMedia outlining the benefits of investing in Real Estate that I’d like to share……………………”Since the early days of America's Wild West when homesteaders competed in land lotteries, the allure of owning your own piece of property has never wavered. Real estate investing is not just one of the most glamorous investment vehicles today, but,according to Entrepreneur, if done right, it can also be one of the most profitable.
Of course, as with most big goals in life, this is often harder to achieve than it sounds. From narrowing down your property options and picking a geographic area to invest in to figuring out how to fund your initial investment, there are many things to think through before making your first real estate investment.
In this post, learn about three real estate investments that can reliably produce good returns.
Residential Multifamily Units For the purposes of real estate investing, a multifamily building can be anything from a simple duplex with a shared wall to a full-on multi-story apartment complex complete with parking garage and onsite amenities.
The key here is that you have multiple potential income streams from a single piece of rental property. As one multifamily building investortells Business Insider, "the more doors, the better."
With a multifamily property, you can be making money even if one or two units lie vacant for a month or two, whether due to maintenance needs or just a temporarily sluggish rental market.
Commercial Multi-Unit Office Space With this type of real estate investment, here again you see a multi-unit concept, but instead of renting to singles, couples or families on the residential side, you will be renting space to solo preneurs, partnerships and corporations on the commercial side.
AsMy Stock Market Basicspoints out, you may earn less per unit on commercial property rental income than you would with multi-unit residential property rental income, but in exchange you will devote less time, effort and energy (not to mention money for repairs and maintenance) by investing in commercial property.
If you have theequity to get into the commercial real estate marketin a growth area, you can be earning a stable return on investment without many of the typical headaches of dealing with tenants on the residential side of the real estate market.
Real Estate Funds If, for some reason, you are not keen to invest the sweat equity into commercial or residential real property, you can still deal yourself into the real estate investment market by participating in real estate funds.
These funds work much like mutual funds do, using trusts or crowd funding to help a group of real estate investors acquire an interest in residential or commercial property without the headaches that can come from outright ownership and day-to-day management.
Investopediarecommends these possibilities:
Real Estate Investment Trusts (REITs)– REITs offer hands-off investing with dependable dividend payouts at 90 percent of the fund's taxable income.
Peer-to-Peer (P2P) Lending– Often called crowd funding, P2P lending gets you into the real estate investment market for a low initial investment and a potentially high (5-12 percent) return.
Dividend Stocks– Look for "dividend aristocrat" stocks, which are so labeled because they pay increasingly greater dividends from one year to the next.
Index Funds– These are mutual funds tied to the real estate market index.
With these three options to choose from, you are likely to find a real estate investing entry point that works for your budget, available time and goals. The best thing about investing into real estate is that there really is no one "right" or "wrong" strategy to use that can guarantee success. Rather, by doing your research, planning carefully and always aiming to operate from a cash surplus, you can set yourself up for ultimate success.”
If you’re thinking about investing in Real Estate, give me a call at 239-273-4006 and we’ll discuss the types of Real Estate currently available in the Naples area or you can send me your questions to Fay@move2naplesnow.com. Also take the time to visit my website at movetonaplesnow.com where you can learn about my VIP Buyer Program. Fay Mlinarich, PA., Premiere Plus Realty.
Author:Fay Bamond Phone: 239-273-4006 Dated: March 2nd 2017 Views: 112 About Fay: Fay Bamond, PA, Broker Associate, provides buyers and sellers in-depth local knowledge, technologica...
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"Fay was professional, responsive and above all, trustworthy. It's difficult and unnerving to be 1300 miles away when your house is being built, but Fay was there and asked all the right questions of the builders and relayed that information back to me. She asked questions on my behalf that I hadn't even thought about and I felt from the beginning she had my back. Fay went far beyond my expectations and I would recommend her to anyone for their real estate transactions. "