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Many people are looking for different types of investment strategies. Real estate can be an excellent long-term investment.
Being a Landlord
Owning rental properties can be a great way to bring in additional income. Being a landlord is ideal for people that for general contractors with renovation experience. If you don’t fit that description but you have great DIY skills and a lot of patience, you could also be a good landlord. Landlords will need up-front capital to cover the costs of maintenance. You would also need to be able to cover the costs in the case of vacancies. If you become a landlord, be sure to keep track of expenses associated with your rentals for tax season, because they are all tax-deductible.
Marketing Your Rental
If you plan to purchase a rental property, you will need to be able to fill the units with renters. If you don get renters, you will be on the hook for covering the monthly expenses on your own which can be costly. A great way to market your rentals is to send out real estate postcard marketing to advertise to potential renters.
Real Estate Investment Groups
Real Estate Investment Groups, or REIG’s, are a great way to bring in real estate income without having to manage it yourself. This is a better option for people that don’t have experience with renovation and maintenance. There is more of a risk of a vacancy in REIG’s so people who want to go this route need to be able to cover the costs without being hurt financially. This is a good option for people that have expendable money to invest and don’t mind the risk.
As with any type of investment, real estate can have risks. The market could go up or down depending on any number of factors. If you plan to make a long-term investment, real estate might be a good option for you.