The real estate industry has produced more wealth globally than any other investment market. Real estate is a stable market, spreads risk and offers numerous options to generate profit. It may not even require high initial investments either.
Take the story of Kent Clothier, founder and CEO of Real Estate Worldwide – he opened his first escrow for only $500. He found a motivated buyer and a distressed property and brought them together for his first profitable real estate deal. Today his portfolio includes around 5,000 properties that he manages and flips.
While it’s easy to make money in real estate, it’s also easy to lose it. When it comes to real estate, your success depends on smart, thought out investment decisions.
Here are some smart options for investing in real estate to potentially generate hefty income:
Long-Term Residential Rentals
One of the best real estate investment strategies is buying and holding residential rentals over the long-term. The adage, ‘Location, Location, Location’ takes on greater importance than other real estate investments when you’re taking this path. The location will affect the rate at which property values increase, you can get for it and how quickly you can find long-term tenants.
Lease With An Option To Buy
Leasing a property is a great way to invest in real estate without putting up high initial capital. Leasing with an option to buy lets you set a price for the property at which you can later buy it. You can also sell your rights for the purchase to other investors if the market climbs substantially, incentivizing them to buy the property at discounts.
Fix-And-Flip
With the popularity of home renovation shows in the United States, the fix-and-flip option is booming. However, it’s not as easy as buying any dilapidated property and selling it after a fix-up.
Property choice also plays a crucial role in the profitability of your fix and flip venture. A good strategy is to go for the ugliest homes in up-and-coming neighborhoods to get the most value for your investment.
Vacation Rentals
Vacation homes are a lucrative real estate investment, and you can make a great deal of passive income from renting out the property to vacationers. Ever since HomeAway and Airbnb showed up on the scene, it’s also easier to find renters. Additionally, if you buy a property in a local with high footfall, the property values are likely to rise over time.
Commercial Real Estate
Investing in commercial real estate is traditionally the best way to make money through the real estate industry. As long as you can add value to your property and develop them through renovations and upgrades, you can make steady rental income and substantial profits by selling your commercial property.
Consult With An Experienced Commercial Real Estate Broker in Houston!
Eleanor Curry is one of the leading commercial real estate brokers in Houston, Texas. Her years of experience in the Houston real estate market has given her deep insights into the market trends and future projections. Get in touch with her today to benefit from her unique expertise and proven client insights and make optimal real estate decisions to boost your commercial real estate broker in houston!