Three Ways To Invest In Real Estate

If you have some extra cash that you are looking to invest, real estate could be just what you are looking for. Click here for more information.

Three Ways To Invest In Real Estate

3 February 2020
 Categories: Real Estate, Blog

Everyone knows that one of the best investments to be made is in real estate. Land and property never seem to go out of style when there is money to be had. Inflation, demand, and availability drive up the price of real estate, making it perfect for investors who are willing to wait a decade or two before selling what they have bought. Nowadays, there is more than one way to invest in real estate, and real estate investors are looking at all of them. Take a look yourself. 

Straight-up Property Buying

In the spirit of the game Monopoly, you can buy up dozens of properties, either fully developed or undeveloped, and then either fix them up to sell or sit on them until their value reaches an all-time high. Most investors will wait for the value to skyrocket. However you choose to manage the properties you buy is up to you, but it is almost impossible to lose money buying property unless you sell too soon. 

Non-Traditional Mortgage Lending

People with bad credit histories want to buy houses just like everyone else. They are too huge of a risk for other lenders, so they borrow loans from non-traditional lenders. These non-traditional lenders are backed by real estate investors like yourself. You put your money into a pool of money with other investors. The money is then drawn on by brokers who provide these risky borrowers with their mortgages. The interest rates are exceedingly high because of the borrowers' credit scores, but that benefits you because you get a piece of the interest money collected every month. If and when the borrowers default on the loans you have backed, their properties are claimed by the non-traditional lending and investing firm and sold off for profit, and you get a piece of that money at a slight loss. 

Municipal Bonds

These are bonds offered by your city for the purpose of investing in, rehabilitating, restoring, and/or purchasing property for the purpose of developing it for city use. "Munies," as they are called, are very risky because the city can recall the bonds at any time if and when an intended project fails. The length of time that you have to hold onto the bonds may be shorter or longer, depending on the needs of the city. On the flip side, you never have to hold onto physical properties nor do you have to maintain any properties.

To learn more, contact a real estate investor.