Most people think of investing in real estate when they see images of a cute home or an apartment building. These are great ways to invest in a stable market that is resilient to adversity, and eventually matures. This is not the only way you can invest your money smartly. There are many other ways to invest your money wisely. Let us take a look at some common real estate investment types.
Real Estate Investment Trusts
Since their inception, REITs (Real Estate Investment Trusts), have been around for some time. These trusts are based on a simple idea: Companies that finance or own real estate properties in order to make profits for investors. The companies use investor money to continue to acquire and manage additional properties, while giving back any earnings. These can be in the form of dividends or long-term appreciation for properties that have been sold.
Raw land, which is one of the most underutilized types real estate for small investors, is exactly what it sounds like. It’s land that hasn’t been developed in any manner. Raw land is often very valuable and can appreciate quickly. Raw land appreciates, often quickly. Simple supply-demand relationships mean that this is one of the most profitable ways to make a profit in a matter of years. It is possible to either sell the parcel or break it up to increase your profits.
Commercial and mixed-use real estate
This type of investment is more common than single- or multi-family homes. Mixed-use and commercial real estate can take many forms.
- Only commercial buildings such as strip malls or traditional shops,
- Skyscrapers and buildings devoted to offices and companies
- Mixed-use buildings are usually built with shops on the ground level and living above.
- Boutique buildings in busy downtown areas
- Shops by the individual
Whatever your approach, commercial and mixed use buildings can be a great investment. They appreciate when the cost of living in the area they are located rises.
Crowdfunded Real Estate
You can still invest in real estate if you don’t have enough money to buy a single-family or multi-family home. Crowdfunded investments are available, where two or more people pool their funds to purchase properties. This is different from a partnership which is a legal entity. Crowdfunded investments are where people sign up to raise money and then purchase the property. Then, an organization or designated person will manage the investment, distribute earnings over time, or oversee it until it matures.
Protect yourself from lawsuits and other adverse consequences
It doesn’t matter how much you invest, but if you are serious about protecting your assets and protecting yourself, you should consider an official approach. This is the easiest way to get started. Doing so has two major benefits:
- It can be used to purchase insurance that covers damages or lawsuits.
- Only your business can lose money if you are sued. Your personal assets are protected. These assets are yours and no one can take them away from you.
You should research the best real estate investment areas in Florida, how to get the highest ROI for your dollar, and how capital gain might impact you in future.
This post was written by Dayana Susterman Dotoli. Dayana is the head real estate agent for the Tiffany House In Ft. Lauderdale Beach. Dayana has assisted over 150 individuals with buying, selling, and leasing at Tiffany House. The Tiffany House Residences is a 12 story tower, offers 129 residences, including 1, 2 and 3-bedroom condominiums and townhomes, with exclusive, resort-style amenities and views of the Intracoastal Waterway and the Atlantic Ocean. To view a Tiffany House Condo Fort Lauderdale for sale, Contact us today!