5 Easy Ways To Make Money Work For You With Real Estate Investment
Legendary Investor Warren Buffet defines investing as “the process of laying out money now, to receive more in the future.” The most successful investors invests early, then allow their money to grow for years or decades before using it as income. Investing differs from trading in that investing is for long term, usually years and decades. Constantly buying and selling investments is likely to make less money than a buy and hold strategy in the long run.
In fact almost everyone can find at least one way to put their money work; open a high yield saving account, stocks, develop a stream of passive income through becoming a silent partner in business, or investing in real estate etc. I believe from all of the above investing in real estate is still one of the best easy ways to create long term wealth, if you select the right real estate at right location it will always be in high demand and it is tangible. Investing in real estate can offer individuals both immediate income in the form of rents and longterm appreciations when you sell appreciated property at a profit. It is also a good way to diversify your portfolio, as an asset that is subject to different influencers than stocks and bonds.
Here are five easy ways that you can get into real estate investment:
- Becoming Landlord: One classic way to invest in real estate is to buy property and lease it and get return on investment. If you have the available cash investing in real estate you could consider buying a single home to be an investment, or you could invest beyond home into land to sell stores or homes to rent.
- Buying and Selling Homes or Commercial Properties: You can take one step further and you can buy and sell properties. You can even buy homes renovate and sell. I started with house flipping actually to my real estate investment journey. You can also buy commercial units. By buying and selling you can get capital appreciation. For this usually suggested time frame for making appreciation is at least 2-3 years.
- Buying and Selling Land: You can buy land and wait for some time; in land usually the time frame is 5-10 years for capital appreciation. If you want to go further in your real estate investment journey and become pro you should start opting for commercial land as well which is usually more in value but has more capital appreciation within less time.
- Real Estate Investment Funds (REIF): They act like mutual funds where in a pool group of investors put their money together to purchase properties. This is also a good option to start real estate investment journey since usually you can enter to such investment funds starting from 2000 Euro. REIF will provide exposure to the market without the time and cost commitment of buying your own property. REIFs has a kind of contract like a trust deed that sets the conditions and obligations of the fund. They trade like stocks on the same exchange.
- Real Estate Limited Partnership (RELP): It provides investors with a diversified portfolio of real estate investment opportunities allowing you to merge your funds with other investors to buy, lease, develop and sell properties that would be hard to manage or afford independently. This is more suitable for high net worth investors. RELPs function like small companies. It requires forming a business plan and identifying properties to purchase and/or develop manage and finally sell off, with profits distributed along the way. After the holdings are all dispatched the partnership dissolves. RELPs has its own memorandum and articles of association.
In real estate investment you should also have certain strategies like other investments. Below I summarized 4 strategies for you:
- Be financially prepared; Make sure you have cash on hand at least for a down payment, partnership share or to buy the property out right. Or if you paying only the down payment make sure there are financial institutions that you can take credit with good interest rate applicable and pay the further amount for the property.
- Get to know the local market; There is an old saying “The three most important factors in real estate are location, location, location.” Talk to the real estate expert in the place that you are investing and also to the locals.
- Keep it simple; Consult the real estate experts and try to find real estates with guaranteed return on investment and capital appreciation. Make sure that when you buy renting of the property with maintenance, interior furnishing, ac units and white goods are included.
- Create a team of experts that you can have consultation from. You should definitely have a real estate expert, lawyer, accountant and if required architect, interior designer etc.
At Privileged Estates and Investment we are trying to serve our clients with tailor made services in each way of real estate investment; buying, selling, renting, creating real estate investment funds, real estate limited partnerships. We have a strong team consisting of real estate experts, accountants and lawyers under one roof. We also make sure that our clients only enjoy the benefit of investing by also helping them from property management and interior to opening bank accounts and anything that is necessary for making real estate investment easy way to bring cash flow.
Finally, as always it is a privilege to live and invest in Northern Cyprus. Northern Cyprus as the best kept secret of the Mediterranean is offering high return on investment and capital appreciation comparing to its competitors due to the fact that foreign investors’ journey just started in this island and it has a lot to offer. You can attend to one of our Live Webinars to have more info as to the current situation and current beneficial property offers in Northern Cyprus including legal and tax advice prepared by our professionals in our team.
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