New investors hear a lot of conflicting opinions about the best real estate investment opportunities available to them. Some experts maintain that house flipping is the only viable option, while others extol the many benefits of turnkey properties. Who is right? Well, they both are.
Joining a trust or real estate company to purchase a portion of a commercial real estate for lease can be very lucrative. By the same token, purchasing residential properties and “flipping” them quickly after making any necessary repairs and renovations can also be very profitable. Choosing the best real estate investment depends a great deal on your personal goals for your investment.
“Fix and Flip”
If you are a very hands-on person, and you want to turn real estate investment into your full-time job, the “fix and flip” model may be the avenue for you. Investors who choose this method spend their time researching short sales, foreclosures, and REO (real estate owned) properties. They then purchase them at discounted rates and spend time and money to renovate them before selling them at market value for a profit.
If you are simply attempting to diversify and stabilize your portfolio and you are not in the market for a new career, this is not the right real estate investment for you.
Turning Foreclosures into Rental Properties
If you want to invest individually in foreclosure residential or commercial real estate for lease, you will likely need to invest some time and effort into finding the right property and renovating it. However, you do not necessarily have to play the part of landlord. Beyond renovations, once you find a trustworthy and affordable property management company, you may turn over regular maintenance and care of the property to them.