Types Of Real Estate Investments

Searching Real Estate Investments One of the focused strategies our community ventures in is, of course, the investment in California Real Estate.

Creating multiple streams of residual income through our investments is the objective.  Whether that be income producing investments or non-income producing investments.

Let’s dive right into the different types of real estate investments there are and how they work.

Office Properties

Currently, one of our favorite properties to look into and learn about are the office space property.  As you know California is filled with big cities and large downtown buildings.  Inside of theses building are mostly filled with desired office space for employees.

In many cities the demand for prime location office space is fierce.  As our economy grows the more businesses are thriving and in need for space for personal.  For instance, these could be brokerage companies, accountants, or insurance businesses.

Although we do love the demand for these types of properties they tend to have high maintenance fees and of course, if you are not able to rent the office space you will be responsible for the operational cost.

Multi-Family Residential Property

Multi-family investment property can be very profitable or you could end up deep in the hole.  That is why it’s crucial to have experts by your side every step of the way when investing in multi-family residents.

Now, what exactly is multi-family property?  This is when you have multiple units you are going to rent out to different families in a single building.

If you are looking into investing in multi-family residential property here are a few tips to help you along the way:

  1. Hire a trustworthy property management team.
  2. Screen your tenants thoroughly.
  3. Require tenants to have rental insurance.
  4. Be sure you have the funds to cover any liabilities or maintenance cost.

The main thing to avoid when investing in multi-family properties is the dreaded money pit.  You may have seen the 1986 Tom Hanks movie, “The Money Pit.”  Although exaggerated, this doesn’t fall far from the real world.

Do your due diligence and inspect every aspect of the home.  Again, you should have a professional with you that knows what to look for and how to inspect the home properly.

Industrial Property

Commercial Property Industrial property is our eyes a lot less of a headache than your residential properties.  Examples industrial property would be a business using your property for warehousing, manufacturing, construction yards, or research and development.

There are many benefits that go along when investing in industrial property, one already mentioned above.  So let’s go over a few more to get a better idea of why we should be investing in industrial property.

When investing in residential or office property you usually don’t get that property leased for a very long time.  On the other hand, industrial property leases typically fall under a 3-6-year lease which means you have that piece of property rented out and making money for the time period of the lease.

Let’s face it industrial property is just not as attractive as other types of real estate investments.  Why?  Well because you’re usually not going to reap vast amounts of money quickly like you would flipping a home you bought when the market was at a low.

On the contrary, you also won’t have the risk you take when buying up other types of properties.  Slow and steady wins the race in real estate investments.  Having a solid stream of income coming in over the years is always good to have in your portfolio.  We advise not think as this investment venture as a get rich quick scheme.

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