TAMPA, FL / ACCESSWIRE / November 1, 2021 / Real estate is an excellent investment, says Paul Comingore. Dollar for dollar, you can't beat the returns for the effort you put in. But it also requires a certain amount of knowledge and sizable upfront investment to be successful. You should be prepared to invest both time and money before making the leap. You should also consult with an attorney well beforehand to ensure that you are legally protected. Consider opening an LLC to avoid legal liability and protect your personal assets should the investment fail.
Think About Investing in Rental Properties Says Paul Comingore
This is one of the most popular and well-known real estate investments--and for a good reason. As long as you can find tenants, rental properties are pretty much guaranteed monthly income, and Paul Comingore says that commercial real estate is also a popular investment. Still, it requires more significant upfront investment and management.
Just make sure that you're ready for the investment of time and effort that comes with being a landlord before jumping in. No matter how well maintained your residences are, there will always be repairs to be made, maintenance to schedule, and questions from your tenants. Many property owners choose to hire a rental management company to deal with these issues for them. It takes a chunk of your profits, but it leaves you with a lot more free time and peace of mind.
REITs, or real estate investment trusts, are a significant step down in rental properties' dollar and time equity. Paul Comingore explains that they allow you to invest in real estate without owning physical property. It's like a mutual fund, but instead of the stock market, you're investing in a selection of companies that own commercial real estate.
This is the perfect solution for those new to real estate investment because there is no hands-on management, and you can start with just a few hundred dollars, says Paul Comingore. They also generally pay high dividends.
The downside? They come with a lot more risk than some other forms of real estate investment, and you have no control over how the project turns out. It's like investing in the stock market, but more complex. Make sure you start with publicly-traded REITs until you better understand the industry and the investment you're making.
Individual investors can own specific units within multifamily housing as a form of a group investment. All of the owners become a legal entity in which each member is a joint owner. These investment groups are a lot like small mutual funds. Paul Comingore goes on to say that in order to lower the risk of vacancy for a particular unit, there's often a pool of rent that keeps your income steady, whether or not your team is filled.
Depending on the project, the investment could be thousands or tens of thousands of dollars. But the returns can be very worth it.
Affordable Family Rentals
SOURCE: Affordable Family Rentals