The Best Real Estate Investments Are Not Always Houses
Posted on: 6 October 2020
When you think about investing in real estate, you probably envision yourself buying a house. You either rent that house out for extra income, or you remodel it and then sell it for a quick profit. Both of these strategies work well for a lot of investors, but buying houses is not the only way to invest in real estate. Here are a few other options to consider as a new real estate investor.
Buying and splitting land
If you come across a large piece of land for sale in a desirable area, buying that land could be a great investment. Once it is in your ownership, you can work with the municipality to divide the land into separate 1- or 2-acre building lots. You can then sell off each of those lots and make quite a considerable profit. You could even pay a builder to put up houses on the land and then sell the new homes. This is a pretty big undertaking, but it is how a lot of investors make a profit.
Buying mobile home parks
Another option is to buy a mobile home park that is for sale. As the new owner, you will make money collecting rent from all of the residents who have their homes parked on the land. You can make some improvements to the park that allow you to raise rent a bit and make even more of a profit. This is a very hands-on way to invest in real estate and a good option if you're looking to real estate as a full-time job.
Buying commercial buildings
Buying one commercial unit to rent out is not usually worth the hassle. But if you can manage to buy a whole strip mall or a large building with several rentable units, then you stand to make quite a profit. (Malls can also be a good investment, although they require significant capital to purchase up-front.) Commercial spaces are often readily available to investors since so many people overlook them in favor of buying homes, so if you decide to go this route, you can probably have your pick of properties.
While buying and renting out homes is one approach to real estate investment, it is not the only approach. If you are looking to invest in real estate, make sure you consider buying raw land, a mobile home park, or a string of commercial units. Contact an agent to start looking at real estate for sale.
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