There is more than one way to invest in real estate today. Which are the best investment strategies to take advantage of now?
The real estate industry has proven to be a strong alternative asset class for thousands of years. There are many ways to engage in it, and profit from it. Though how well your results live up to your expectations relies heavily on your strategy and the execution of the opportunities.
Picking The Right Investment Strategy
While there are plenty of self-proclaimed gurus and ‘experts’, the ‘best’ real estate investment strategy comes down to what is best for you and your unique situation.
If you intend to be a hands-on, active DIY investor, this may include your skills and work experience.
More importantly, for all, it is about achieving your real goals. Be sure you pick an investment that can deliver.
You also want to consider the best possible ROI on your money, risk-adjusted returns based on your level of risk tolerance, how much you have to invest, and what investments and assets you can get access to.
Consider what your priorities are. For many today it is not only wealth preservation and tax-saving benefits, but also passive income which stands out as the most urgent need.
Top Choices To Consider In This Market
Aside from flipping houses or real estate stocks which aren’t a great choice for most, below are some of the top strategies you may want to consider this year.
Income Property Investing
If you want passive income, high returns and growth potential, as well as downside protection, then income property investing may be for you.
This could be in single or multifamily rentals. It may be acquiring existing performing units or renovating and improving the operations and performance and net profit of underperforming properties.
Private Lending & Mortgage Note Investing
For those with some capital, private lending can yield great returns and income. With the backing of hard collateral.
Of course, deciding who you should fund and lend to can be challenging to get right. It can be a full-time job, with lots of regulations and compliance to adhere to.
Another alternative to this is to invest in existing mortgage debt. Which can significantly simplify the process. Though you still need a great understanding of what makes notes valuable, the risks, how to legally interact with borrowers, and a solid professional team.
Real Estate & Mortgage Debt Funds
For busy professionals and retirees, one of the best ways to leverage opportunities in the real estate and mortgage debt space is simply to work these strategies through a fund.
These professionally managed funds do all of the hard work for you. The best of them have management teams with decades of experience, all the connections, and proven systems and processes.
You simply invest, let them go to work, and deliver the results. Often in the form of passive income and regular dividends.
There are many ways to make money in real estate. The ‘best’ strategy is all about what is best for you, your goals, and based on your resources.
This may include income properties, private lending and mortgage notes, or related funds that automate everything for you.