A real estate investment is believed by many to be an excellent way to accumulate wealth. For example, listen to the wisdom of Andrew Carnegie, the American industrialist and philanthropist, who said that 90% of millionaires became wealthy by investing in real estate. Perhaps you can become one of them too.
Types of Real Estate Investment
There are many ways to begin a real estate investment. They can be broken down into two distinct classes, direct ownership, in which you own the properties, and indirect ownership, such as investing in real estate investment trusts (REITS).
With the arena of direct investing, there are a host of possibilities:
- A New Personal Residence. Buying a home for your family, especially when the market is not overly hot, can produce great capital gains as time goes on.
- Fixing and Flipping a Property. If you have the expertise, renovating homes that are in need of repair and flipping them for a profit can be a lucrative business, especially in areas where people are moving in.
- Rental Real Estate. Rental properties, whether single residential homes, multi-dwelling real estate, or business properties, are excellent for generating monthly cash flow.
- Buying Raw Land. Buying undeveloped land on the fringes of developing areas can be a quite profitable real estate investment if you have a long timeframe.
Do Your Homework Before You Invest
As always, it pays to be knowledgable and tuned in when involved with a real estate investment. Here are some ideas to keep in mind:
- Know the neighborhood you are considering like the back of your hand.
- Don’t overspend in a hot market.
- Start small and scale in with additional properties as you start achieving profitability.
Partner with Speed of Light Funding
Speed of Light Funding is committed to providing fast and dependable funding for a variety of real estate financing solutions. If you are looking to buy commercial real estate or are in the fix-and-flip business, we can provide you with a number of high-quality funding options. Give us a call today.