Nibletz Staff
If you are entering the real estate investment game for the first time, you have a lot to think about. Where you decide to buy property is critical, of course, but before you even get that far, you need to decide what your real estate is for. Who are your perfect tenants, and what type of business structure do you want to create?
Each has its own benefits, but some ideas will give you a better return on your investment. We’re going to take a look at your best options right now – read on to find out more.
Flipping
House flipping is the art of buying cheap, repairing and renovating in double quick time, and selling the property for a profit. It can bring a huge return on your investment. However, you need to get it right. You have to have a substantial amount of cash to pay for the major renovations, and a team in place that can work fast to finish the job safely accurately, and attractively.
Vacation rentals
If you love a particular part of the country and know all about its charms, why not consider a vacation rental property? In the right location, you can expect regular bookings all-year round, as well as provide you with a cheap place to get away from it all. However, while the quality of your property will be vital, so will your marketing efforts. According to hospitality experts Eviivo, it’s a good idea to invest in software that enables you to market, promote, and take bookings all from the same place. It will take time, too, so there might be a good business case for hiring a professional management company to run things on your behalf – particularly if you live far away from the area.
Wholesale
Wholesaling investment properties is the process of buying a batch of properties at discount prices and then selling them on the open market. However, it can be tricky to get started, as it requires a lot of investment and scale to make a sustainable profit. The idea is to sell real estate as fast as possible, too, so you will need to know your market inside out.
Family homes
For long-term investors, renting out to families is a safe and profitable opportunity that can secure solid ROI. Families tend to stick around for a long time – up to several years. They are also more likely to take care of your property, costing you less in maintenance over the years. While renting out to students or young professionals can bring in more short-term gains, they are both riskier markets than families.
Multi-family homes
Finally, if you have the funds, investing in multi-family apartments or blocks can yield fantastic returns. Again, it’s not something that the inexperienced should start with, as there is an enormous risk – if you don’t fill all your properties, you could end up losing money. However, it’s an excellent idea if you plan on living in the block yourself or have the time to invest in managing the property correctly.
