Residential
and commercial real estate is an attractive investment avenue for many people.
It can be an opportunity for large payouts or for steady income streams.
Whether you have already been dabbling in real estate or you are looking to get
started, here are some ways to help you build a diverse portfolio of
properties.
Fix and Flip Houses
These are
a great way to break into the real estate market. It involves buying houses
that are run down or cosmetically challenged, fixing them up, and then
reselling them at an often substantial profit. Start with cosmetic repairs
unless you have experience and resources in structural construction. You will
want to find a house that is the least attractive one in a nice neighborhood to
make reselling easier. If you have limited funds to get started, you might want
to consider a bridge or hard money loan to fund the renovations and
some of the initial purchase. Be aware of the repayment terms, since these
often are short term solutions.
Commercial Office Spaces
Buying
office buildings can help provide a steady stream of income for the long term.
Look for buildings that need to be updated if you have resources to perform
those quickly and affordably. Locations that have a good flow of traffic and
are in business districts will help attract businesses to the space once it is
ready to rent out.
Multiuse Properties
These are,
like their name implies, properties that have multiple types of space and
buildings on them. Look for properties that have apartments, townhouses, ore
condo mixed with retail and office spaces. If you are lucky, you could find one
that has entertainment or sport amenities already in place. It's fine if you
don't have experience in event center or country club management. You can always contract the day to day operations to a
company that specializes in that so you are able to focus on your real estate
development plans.
Undeveloped Land
If you
have the opportunity and means to purchase undeveloped land in a desirable
area, you should definitely take it into considerations. Think of the
possibilities for the space, and if you want to get involved with a larger
project like a residential community, mixed space complex, or shopping mall
development.
There are
no quick fixes that are going to bring you extraordinary returns with little
work. However, with a careful strategy and diverse portfolio, you help shield
yourself from potential losses in one sector and can steadily build a stable
income through real estate investing.
