Thursday 18 April 2024

Real Estate Investment for Increasing Wealth

If you want to join the real estate investment community to grow your wealth and plan your future to live on the rents, you must first evaluate the different alternatives that exist to participate in the sector. Some require a greater investment of time or money than others, as well as experience or knowledge of the sector.

Michael Sapir, a key personality associated with the real estate sector in the United States. Sapir, a Jewish-American who specializes as a real estate developer with an array of successful projects in his name. He is also a professional lawyer and entrepreneur. Many aspiring real estate professionals and investors turn towards Sapir for advice and suggestions on different subjects including investment.

We turn towards the insights which Sapir brings from his own experience. So, take note of the following opportunities that exist to become a real estate investor, from the simplest to the most complex:

  1. Sublet unoccupied spaces

This investment modality gives value to areas of your property without occupying or of little use, such as visits, parking lots, basements, and roofs. It works for both seasonal and long-term rentals. It is ideal for beginning investors who are not familiar with market values or with the practice of leasing complete real estate.

  1. Leases

It is the most common earning modality. In this case, you buy a property with the objective of leasing it, either short-term (temporary or vacation) or long-term (more than 6 months). You can focus on having multiple tenants for a property in different periods of time (winter or summer, holidays, holidays, AirBnB style), or opt for the traditional lease to a single person for a specific time.

  1. Purchase and sale

In this case, your focus is on acquiring and reselling properties in areas or areas of greatest demand, close to high traffic public spaces (supermarkets, subway stations, bus stops). It requires that you study the prospects well before investing and the regulatory plans of the target areas.

  1. Manage properties

Under this modality, you not only buy and rent properties, but you also offer administration services. From the payment of common expenses to technical maintenance reviews, such as plumbing and electricity.

  1. Renovations

In this case, you buy houses at low prices and you need repairs, you renew them completely and then sell them at a higher price. The challenge here is that you manage knowledge and work values of masonry, design, and architecture.

  1. Real estate funds

The investor invests in real estate indirectly, through a private fund that is dedicated to buying or developing properties for sale or lease. The industry initially started focusing on corporate buildings and offices, but then expanded into the housing sector. The profits of the projects are distributed among the contributors of the fund as dividends.

  1. Invest in auctions

In this case, the investor acquires the real estate in an auction process with the sole agenda of reselling at a bigger price. This type of investment is attractive because the property went through the bank first, therefore the property’s papers and debts are up to date.

Keep in mind that all these investment alternatives have both natural limitations, such as the location of the property, its accessibility, and/or the demand of the moment, such as the co-ownership agreements for office and apartment buildings and condominiums and the debts associated with the real estate.

Invest in real estate is to grow personal capital in the long term. However, there are many myths about this type of business that can harm your investment if you do not know them.