- May 15, 2022
- Posted by: Dennis
- Category: Real Estate investing
There are several platforms to invest your money in today. The stock market is obviously still an option; however, many investors are moving away from that venue due to the market’s volatility and low rate of return. Some investors are finding decent returns lending their money out because buyers are turning to private money sources due to standard commercial lending sources being so tight in the current economy. However, the platform that offers one of the greatest opportunities and highest rates of return in the current volatile economy is investing in commercial real estate. Many of the same people who previously invested in residential real estate are moving into buying commercial properties because they see current market conditions as creating an opportune time to make this upward transition. So, what are the factors that lead commercial investments to stand out? Investing in commercial property enables you to generate money in several different ways. 1. First, you can buy the property, build equity and then, according to your exit strategy, take your profit upon selling the property.
Most people buy one or two properties. One is their primary residence and sometimes they have a vacation home. Few people invest in real estate. The main reason is they are not comfortable sticking their neck out in something they are not entirely familiar with. There is so much that needs to be understood and it just seems overwhelming to the majority of people. Many homeowners pay off their house and retire or keep working their job. Their equity is money sitting their quietly and not doing anything for them. With that money they could invest wisely and be vacationing or playing tennis instead of working. There’s nothing wrong with working if you enjoy your job, but how many people do? Your equity can be used to buy other properties, it’s called leverage. Call your bank today and talk to them about an equity line of credit. You can set it up before you do any shopping.
There are a lot of things to learn in Real Estate before you start investing. In fact, investing in Real Estate is much more complicated than the stocks investing. That is why Real Estate has become the common investing area for many people and thus have become more popular over the years. One needs to have financial and legal knowledge before investing in the Real Estate. So, here we are providing you five basic tips which helps you to familiarize yourself with the basic concept of Real Estate. Location Matters which is an old age saying perfectly suits when we think of the investing in Real Estate. The first thing you should make sure while investing in a property or proceeding forward is whether it is located in a good place or not. If it is the best location, it can be the worst house there, but that doesn’t matter as you can just fix the issues or resell it to someone who wants a house in the best location. This is called as the Fixing and Flipping formulae by the professional Real Estate investors.
For instance, condos can be a great investment and even greater place to live. However, unlike home ownership, your control over the land itself is limited into the future. Furthermore, you will need to decide at some point whether you would prefer to invest in commercial real estate, or residential. Commercial real estate can be a great investment, but you will have to be prepared to modify and redevelop the land to best suit the rapidly changing business world. The next thing to consider is cost, or perhaps more exactly, timing. As the economy grows and shrinks so to do real estate prices. The best time to invest might be when the economy is at its weakest, as prices tend to be lower and you can get more value for your dollar. However, you may have to wait a significant amount of time for the economy to recover in order to recoup your investment. If you plan on living in the property that you invest in, timing may not be as big of a factor. So long as you can make payments and keep the property in good shape, you have all of the time in the world to wait out a shaky economy. As you consider these factors, your next step should be to consult a trained local expert. They will be able to go over your existing assets and determine a reasonable price range for your investment. Once a price is set, they will show you a number of different properties that, in their expert opinion, may have a high resale value in the future, depending upon how long you want to keep the property. When it comes time for you to finally invest, look to land for the safest bet!