Article provided by: Galena Equity Partners
Real estate is simply described as land, it can include natural or mineral deposits or even water bodies situated on the piece of land. Real estate has been a way to easily become successful because the land is one of the very few resources that continues to appreciate over time with development.
Why invest in real estate?
Only very few people choose to tap into wealth creation through real estate, but it remains one of the best ways to generate a steady flow of income for people who invest in it.
In what form does real estate exist?
Before taking that bold step, you must know the different forms of real estate. First of all, there is real estate involving the building and selling of homes, called residential real estate. Next, involves buildings that are for business purposes, these include, shopping centers or hotels, then, there is industrial real estate, which involves buildings used for production and distribution of goods, examples are warehouses and factories and lastly, landed property, these include lands that are vacant, like farms.
How can I make money from real estate?
Investing in real estate is a great plan because you can do it without even owning property or even having any money. As a new investor in real estate you should consider the following investment opportunities:
- You can look into a Real Estate Investment Trust (REIT): This plan gives you an opportunity to invest without having to go through the risks of property ownership while still earning an income from your investment. REITs are acquired like shares through a stockbroker and in return, you gain dividends on your investment.
- Another way is through, Flipping the land: this process involves the realtor purchasing the land and selling it for a higher price after a few years when the land appreciates in value. This process will enable you to gain far more than you invested, with a little patience. There is also searching for these high-value properties and the cost to put into consideration.
- Consider being an agent or property developer: these jobs require that you learn about available property in different areas for sale. Being a real estate agent also grants the opportunity to earn a living by gaining a commission for locating the buyers of the property.
- Lastly, investing in rental properties: this allows makes you a landlord and earns a steady income every month or year depending on the agreement with the tenant. It is an investment opportunity that allows you the property and make money from them without selling. The only downside is you have to always maintain the building and beware of bad tenants who can delay the rent and damage your asset.
What more should I consider?
For an investor in real estate, you must consider an opportunity zone. This allows investors to gain tax advantages and benefits from their property. So, for instance, for developing buildings in low-income areas, the government reduces the amount of tax paid on the property. Opportunity zones in real estate investment can come in very handy to a realtor that wishes to make properties available for people while still making a profit. At, gelanapartners.com, you can learn all about this and so much more from seasoned real estate professionals.