Proven REI Strategies That Will Help You Get Stable Career in The World Of Real Estate!
Being real estate investor, the most important assessment you can ever make is the tolerance for risk. In the world of real estate, money is indeed always on line. Plus, there are many attractive plays that you can make at your own comfort level.
While some of the real estate investors are tempted to enter this field due to the rewards involved, others may want to create some kind of stability and structure for their lives amidst all this chaos. If you are being careful of getting into this world of real estate investing as a result of some perceived risks, do not hesitate or worry anymore!
It is now time for you to take a look at the best tactics and right Strategic REI planning that will help you get comfortable retirement! This guide is ideal for beginners and even for the ones that want a stable income in their life.
One of the most attractive strategies for the investors that don’t want any risk is lease option. This process involves placing tenant in the property on the basis of lease-to-own. Generally, a pre-defined time period for buying and splitting of responsibility for the property maintenances are already decided by both of the parties. This kind of method provides relatively low cost as well as low risk of losing on your investment as compared to the traditional property buys. While not every seller may agree to this kind of investment, relationships can make all the difference!
There are typically four categories of risks that prevail in the real estate industry. The conservative investment properties, the ones that can be easily financed, ones that are in ideal locations and well maintained. The last category of properties is even termed as core investments. Such properties are shown to produce predictable cash flow regardless of whether you think of renting it out, resell it, or flip it. It is to be remembered here that low risk can lead to low returns in the end.
There is much more to flipping than just performing renovations on the property meant for sale. Some of the other top ways for flipping generally includes selling properties that are won in auction, selling “as is” property without doing any renovations, and refinancing and leasing any property. You just require to keep your finger on the right pulse of real estate market to prevent from losses on the flip!
Taking the REIT Route
REITs (Real Estate Investment Trusts) are basically the investor’s way of playing bonds and stock market in a trustworthy way and with getting regular returns. Right from large scale residential, mortgages, hospital, to commercial properties, you can have your diversified portfolio with anything and everything! Plus, you don’t really require dealing with property maintenance or tenants. You can even earn quarterly or monthly dividends on the basis of tenant rent revenue. Isn’t it too easy?
Getting to know ins and outs of the above-mentioned strategies will help you in ensuring a steady and long career in the real estate field. Whenever you are ready to go for riskier investment, don’t forget to do your homework well!