Investor Tips to Decide Which Real Estate Investment is The Best For Your Needs


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There are so many different avenues available to an individual who wants to get started in the real estate investment field. Some investments can be as little $500 so there is something for everyone in this vast field. There are Real Estate Investment Trust (REITs), Real Estate Investment Groups (REIGs), wholesale, retail, and rental options. In deciding which one is right for you, make sure to understand the how each investment differs.

Real Estate Investment Trusts (REITs) are the cheapest and easiest way to get started in the real estate industry. Many first time investors consider these before all other options because they offer a relatively secure and solid investment platform. Some REITs have investment options that begin at $500. This investment is a liquid investment and some REITs offer a Dividend Reinvestment Plan (DRIPs). This allows an investor to invest their cash dividends back into new investments or more shares of their current investment.

Real Estate Investment Groups (REIGs) are another investment consideration for individuals who are just getting involved in real estate and don’t want to invest too much money. Some REIGs have an initial investment around $5000 and are ideal for investors who don’t want to deal with the legwork of the rental industry. An investment in an REIG, invests money into one or more apartment units while the company handles all the daily operations. This includes all the maintenance and tenant issues. The company takes a portion of the monthly rent in exchange for this service.

Almost all investors are familiar with investing in rental property. This is not for everyone and before considering this option make sure that you have the money and time to do this correctly. Purchasing a rental property will generally require a 20% down payment to the lender. Also consider the monthly mortgage, insurance costs, maintenance costs and the hassle of dealing with tenants.

The beauty of owning a rental is that the money is leveraged and the tenants pay down the mortgage. This can leave a real estate investor with an excellent long-term investment that makes money month after month, possibly for a lifetime.

More ambitious real estate investors can consider wholesaling or retailing a property. Wholesaling a property involves finding the perfect investment property and flipping it to another investor or buyer. A retailer holds onto a wholesale property and puts in the necessary rehab work in order get it back on the market. Both can be profitable enterprises but carry a certain degree of risk.

Asking questions with these few tips in mind will help save real estate investors thousands. For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com. We are the nation’s number one home buying franchise with over 15 years of experience. Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business. Come see us for more information.

 

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