Article provided by: Galena Equity Partners
Real estate like any business venture requires proper understanding and implementing the right moves in order for you to fully benefit from it.
The best practices however you look at it either tax benefits or capital involvement require a careful understanding of real estate investment opportunity as a whole.
So what are some of the real estate investment opportunities that you should look out for?
Buying a house is just one of the many benefits to be had when investing in real estate. The idea that real estate simply involves purchasing landed property as the ultimate goal is often perceived as all there is to it by most which aren’t actually true.
Real estate investment opportunity as a whole covers a whole lot more than that with some other opportunities available such as;
- Becoming a real estate agent.
This is one of the primary opportunities that come with real estate and a go-to option for individuals who don’t have the capital to invest in real estate outright or in some cases individuals looking for business opportunities.
Operating as a real estate agent qualifies you to get commissions based on any property you sell. This commission which is 10% of the initial cost of the property can be very lucrative especially when dealing with properties that are costly.
- Property development.
This is another investment opportunity that comes with real estate.
Developers are individuals who look to build structures with the aim of having percentage stake rights to the property over an agreed duration of time or in some instances purchase properties that are of depreciated value to renovate and later sell at a higher cost.
This investment opportunity, however, requires large investment capital to operate and can otherwise be a little demanding for normal individuals to partake in.
- Real estate investment trusts.
Real estate investment funds are some of the relatively less costly real estate investment opportunities to partake.
REITs are solid investment stocks that you can use in earning regular income over time. This process involves making real estate investments without actually acquiring properties in the process.
In terms of risks, REITs have historically offered investors relatively long-term total returns which are quite to other stock counterparts thereby making it a relatively favorable investment in the long run for individuals looking to make real estate investments but with minimal investments.
- House flipping.
Known as a relatively wild side to real estate investing, house flipping simply involves you operating in the field of real estate just like how stocks are being traded in the stock market.
This process often revolves around making sales of properties purchased only about 6 months prior to being purchased. This process is somewhat risky as it requires a large understanding of the real estate market and a bit of luck due to unexpected market cooling and surprising turn of events.
House flipping, however, sees capital gains made in rather short periods.
Real estate can be a very lucrative investment to venture into if you actually know what you are doing. It is essential you get that much-needed education concerning it before venturing into it so as to have control over your fate.