Four Ways to Get Started in Commercial Real Estate
It is no hidden secret that real estate offers one of the best wealth-building opportunities out of all investment strategies and that is why commercial real estate brokerages across America push to educate and assist people in their real estate journey. No matter what type of investor you are, it is possible to generate wealth from real estate. After all, real estate investing has created 90% of all millionaires. There’s simply no other investment vehicle like it. Even though real estate is proven to generate wealth, some people are still afraid to jump in and start purchasing properties. There truly are so many avenues within this field that you will be able to generate income and wealth from and this article looks to educate and inform you on these different types of investments.
Multifamily & Single-family Properties
The first category of property is Multi & Single-family Properties. This category includes properties that house multiple families on one lot and properties that house one family. Both of these investments tend to produce high rental income but multifamily properties generate more since they have more units. Some examples of these properties include: Student Housing, Quadplex, Triplex, Duplex, Senior Living, High-Rise Apartments, and Mid-Rise Apartments.
Real Estate Investment Trusts (REITs)
Real Estate Investment Trust, otherwise known as “REITs” is one of the best real estate investment options for rental income. The REIT itself is a company that will operate and manage the investment property, while the investor (full or part-time) only invests in the purchase. Meaning, the company recruits and brings on multiple investors to raise capital for the purchasing of the property. The REIT looks for income-producing properties but is not limited to only commercial real estate. These investment properties work for both long-term and short-term investment strategies. The real estate investor in turn receives rental income from all the investment properties. This is one of the best ways to create true passive income.
Turn-key Investment Properties
These are investment properties that are ready to be rented out immediately. Full-time or part-time real estate investors purchase an investment property from companies that specialize in restoring properties. Similar to REITs, these properties are excellent sources of passive rental income. Also, as with REITs, the investor will likely spend more time finding a property before buying the property than actually operating the property.
Airbnb Income Properties
Airbnb properties can be a great option for real estate and investments strategy. Airbnb investors start out as part-time real estate investors and the investor has full control over the Airbnb real estate investment, including the price set per stay. Some investors, who do not want to operate any of the properties they own, and only generate passive income, will hire a professional property manager.
This article was meant to educate and inform you on ways to put your money to work in the real estate market. If this article has piqued your interest feel free to reach out to us and we can set up a consultation with one of our experienced and knowledgeable real estate professionals.