With more and more people discovering the benefits or real estate investment, you might find yourself getting a little creative in what you choose to invest in. In our latest posts, we will discuss several out of the box real estate investments ideas to help separate you from the rest of the pack!
Join a REIT
A REIT or a Real Estate Investment Trust will allow you to invest without having to be so hands-on. A REIT owns income-producing properties and distributes 90% of its profits back to the shareholders. REIT’s own all kinds of commercial properties including retail centers, apartment buildings, hospitals, warehouses, hotels and more.
Invest In Vacation Rentals
People are making amazing profits by investing in vacation properties. With sites like Air BnB, more and more people are staying in a house when they go on vacation than ever before. Many times it will only take a few days to see the same profits you would see in a month with a standard rental. When you own a vacation rental, you can rent it out when it is convenient for you, keep it empty when needed and even use the property yourself.
REO’s, Foreclosures and Short Sales
Buying a Short sale, REO or foreclosed property is a great way to find houses at a discount. You need to be careful when buying a distressed property, making sure you are not taking on more than you can handle. Often times, these properties are not well maintained leaving you with some pretty big renovation bills. That’s not to say the deals can’t be found. Short sales and bank owned properties have motivated sellers. You can find properties that have been well cared for, you just need to do a little digging and prepare yourself for the competition.
Buying tax liens has always been a popular choice and an interesting niche for investors to explore. Tax liens are sold to the highest bidder at auction. The winning bidder has the right to collect the taxes owed, plus interest. If the homeowner is unable to pay, the lien holder has the right to foreclose on the property. Typically the taxes are repaid, however, there is money to be made on the interest which is very appealing to many investors.
Buy A Rent To Own Property
Let me rephrase this. Buy the house, then resell it using a rent-to-own structure. You will collect your asking price over the long term and then some. You will receive a downpayment from the buyer to handle the short-term gains, and you will receive a higher than average “rent payment” each month. If the prospective buyer defaults, you can foreclose, taking the property back into your possession and keeping the money that has been paid by the tenant.
Land has always been a safe bet when it comes to investing. Many people are taking advantage of this stability and adding land to help diversify their portfolio. Land is low maintenance and has an array of ways to make money. You can rent it out, develop it yourself or hold and sell when it is in demand. Land is simple to manage and a great addition to any portfolio.
Get Some Help
Finding a niche that works for you can take some work! We help buyers and sellers by procuring incredible deals. We would love the opportunity to help you with your investment needs! Find out how working with a property seller can save you time and money when you decide to invest in Chicago, IL!