What Type of an Investor are You?

Real estate investing is one term that encompasses an almost unlimited number of investment strategies. How do you choose which type of investing is best for you?

If you put 10 real estate investors into a room, you’ll probably end up with 20 (or more!) different ways that they invest. There is no right way to invest. Residential real estate is the most common type of investment because there are many properties and a constant need (in some markets) for affordable rental housing. But even within that narrowed scope, there are many ways to invest from flipping to renting single-family homes to developing multi-family complexes and so much more.

If you’re trying to decide which type if investing is best for you, use this list to help you narrow down your choices.

There’s the way the property will be used
For example, you can invest in residential properties, commercial properties, empty land, or vacation properties, just to name a few.

There’s the way the deal will be structured
For example, you can buy the property outright with your own money, you can get a mortgage, or you can partner with other investors and use their money, just to name a few.

There’s the way that you’ll add value

You might build a structure on empty land, or you might buy a property that you rent, or you might remodel a building for a different purpose, just to name a few. Both building and remodeling could entail a lot of processes – such as getting custom window replacement done, installing new HVAC units or even new flooring with heating! The opportunities are endless in both aspects. You will certainly need professionals for this so the value is warranted, that means contacting companies like https://masterelectrical.com/ as well as others, so you can get things like electrics, plumbing, foundation repair, etc. all done to the correct specifications.

In order to add value to the property your bought, you may want to remodel or renovate a few things to make it look more classy. For instance, you might want to refinish the concrete floors and unfinished walls of your basement by opting for Basement Refinishing services provided by firms similar to Georgia Home Remodeling. Remember that basements are often treated as the most ignored space filled with junk, hence they are mostly unattractive. However, by providing it with a makeover, you can surely attract potential buyers. Since you would already be remodelling the basement, it would profit them, meaning that they would not have to spend extra to get the remodelling job done.

Besides this, bathroom or kitchen remodeling, could also attract a large number of buyers (especially women) or tenants who want to live there. You could install glass shower doors in your bathroom by contacting professionals from companies, such as GlassCrafters Inc. Or else, you could improve the appearance of your kitchen worktops by installing trendy granite countertops or adding cabinets in your kitchen and bathroom. In addition, you could install a lovely glass mirror in the bathroom, and so on. These things would almost certainly increase the value of your property.

There’s the way you hope to profit
For example, you can buy and hold (perhaps doing nothing with the property or using it yourself), you can rent it out, you can sell it, or you can do lease-to-own deals, just to name a few.

So how do you put together the best type of investing for you? Consider the following:

• Your financial goals (what types of investments can help you achieve them?)
• Your interest (what do you want to do?)
• Your experience (what kind of transactions are you comfortable with?)
• Your education (what do you already know and what do you need to know?)
• Your skill (i.e. in remodeling, structuring deals, selling, managing property, etc.)
• The market you plan to invest in (it doesn’t have to be the market you live in)
• Your access to capital (not necessarily the money you have but the money you have access to)
• Your network (it’s often WHO you know!)

Pick a real estate investing model that you think you’d enjoy and try it. Get educated, gain in-the-trenches experience, do deals. Avoid the temptation to try many different deals at once just focus on building your knowledge and experience in one type to start, although you can always branch out later.

{{cta(‘6e2c21ed-ae85-40ce-88b6-ead94cc39541’)}}