- June 5, 2018
- Posted by: Asheesh Sinha
- Category: Others
Real estate has always been considered a great way to invest your personal capital. When you look to invest in real estate, there are many different ventures out there that you can consider. Here are five different kinds of real estate investment ventures that can provide you with a great return on investment.
When you were looking to invest in real estate, purchasing a property to use as an Airbnb can be a great option. If you are able to find a property in a major city or another area that has consistent demand, renting an Airbnb can be ideal. This will provide you with a steady stream of income and can allow you to run your own business. Since an Airbnb functions as a type of rental property, you may qualify for a 1031 exchange if you ever want to sell the property. A 1031 exchange allows investors to defer certain taxes when selling their property in order to invest in a different real estate venture. This is a great way to preserve equity and accumulate wealth in real estate. There are many advantages to leasing a property through Airbnb or similar websites, so this can certainly be a profitable business venture.
College Town Investment
One option for investing in real estate is to purchase off-campus housing near a major college or university. Students are always looking for off-campus housing that is in a convenient location and has the basic amenities they need. Filling this demand for quality student housing can pay off very quickly. Doing this will provide you with a great cash flow stream and a consistent demand for space. Furthermore, you can require that a parent of a student guarantee the lease, which will help to provide you with additional security.
If you would like to invest in real estate, but do not want to take on any management responsibilities, one option would be to consider using a micro-investing website. When you invest in real estate through one of these websites, you will be able to invest a small amount of capital in a wide variety of different assets. You will then receive a preferred return on investment based on the success of the project. You might want to also look at loans with low interest rates to help with the costs.
Publicly Traded Companies
Many people who like to invest in real estate also choose to invest in publicly traded companies that are in the real estate industry. There are a variety of real estate investment trusts, property developers, and other real estate service providers that are traded on the public markets. These companies can provide you with the ability to take advantage of a strong real estate market and can allow you to diversify your investments.
Rent a Room
The fifth venture to consider is simply to rent out a room in your existing home. If you have space in your home that you could lease to another person, doing this could provide you with some additional cash flow. This can then also help you to pay down your mortgage or find other ways to invest in your property to increase its value. Because tenant needs tend to vary, it’s common to offer the option of leaving the room either furnished or unfurnished. In this case, a storage unit is a great way to store unwanted furniture in the event that a tenant brings their own.
When you do invest in real estate, it is important to find ways to improve the assets. Doing this will provide you with a better return over time. Don’t go into this blind, even if you aren’t putting a lot into it at first. Having a solid business plan will help you succeed in the real estate industry.