4 Types of Real Estate That Can Earn You a Million Dollars This Year
Have you looked at these property types for real estate investing?
Here’s a riddle for you. When is an apocalyptic housing collapse good for business?
When you’re investing in other types of properties, of course. While the current housing crisis has soured many real estate investors on the whole business of investing, that same crisis has actually been a financial boon to Americans who are working in markets outside the mainstream. Rental properties and other types of real estate are booming right now, and you can earn a small fortune by capitalizing on what has become an unbalanced industry. Here are four property types that can be highly profitable in today’s investing climate.
In the housing market, the ratio of buyers to renters works like a see-saw – when one goes down, the other flies up. This is exactly the case with the current market, and that’s why many young people who grew up during the housing crisis are choosing to rent instead of committing to a mortgage. As a result, multi-family residences like apartment buildings are suddenly red-hot. These properties are more expensive than single-family homes, but it only takes one good investment to earn enough capital for you to get the acquisition train rolling. Once you have five or more buildings generating income for you every month, you’ll want to look into getting yourself a monocle and top hat.
Baby boomers are retiring in massive numbers, which means that in the coming year America is going to see a huge demand for nursing homes, retirement communities and healthcare facilities. If you’ve never invested in real estate before, this is a good market to start with, because many turnkey investment agencies have begun to add retirement condos and apartments to their stable of available properties. All you need to do is buy the mortgage – they’ll take care of the maintenance and tenants. After you learn the ropes, you can branch out and invest in entire communities for a huge return.
Say what you want about the tech bubble, but it’s breathing new life into the commercial real estate market. Every day, a thousand new start-ups open their doors for the first time, and they’re all clamoring for the same thing: cheap, affordable office space. For the first time in two years, commercial property lending has gone up thanks to this huge demand – which means that now is the perfect time to stake your claim in the market. Look for “C-Class” office buildings in trendy, upcoming neighborhoods. Rent them out for low rates and use the money to invest in even more properties. When you have your portfolio built, you can start tweaking the rent to maximize your margins.
The White House wants to unload the millions of foreclosures it’s currently controlling, so it’s selling them off by the dozen. While a city block full of dilapidated houses might not seem like a good investment, don’t forget that sometimes these properties are sitting on golden ground. Urban real estate, especially in hip cities like Pittsburgh and Portland, is incredibly valuable, and many developers will pay a king’s ransom for a prime piece of land. This makes investing in foreclosures a winning decision for everyone involved. The developer gets a new location for their franchise, the city gets rid of vacant, unwanted homes, and you get rich in the process.
There are no guarantees when it comes to real estate, but it doesn’t take a PhD to see where your best bets lie. If you’re thinking about getting into the market in the near future, take a step back from single family residences and consider these trending property types instead. The unfamiliar territory might take some getting used to, but in the end, you’ll be glad you chose the more profitable path.
Do you have any other property types that are profitable? I’d love to hear about it in the comments below: