How to Choose the Right Real Estate Investment
In our last blog entry, we discussed four common types of real estate investment: fixer-uppers, rental properties, real estate investment trusts (REITs), and tax liens. You have several options in the world of real estate investing, these being just a few examples, and choosing the right kind of investment can be the difference between success and failure. Your financial security is on the line, so it’s important that you make the right decision.
In today’s blog, we’re here to help you choose. Read on to learn more about which investments best match your goals, and turn to GA Tax Lien for support in tax lien investing. Anyone can benefit from tax liens with the right knowledge and strategies, and we are here to provide you with exactly that. We want to help you find success, whether you are new to real estate investment or you’re a seasoned investor looking for new opportunities. Explore whether tax liens are the right choice for you, and reserve your spot at our next seminar today!
Why Choose Real Estate Investment?
The first thing you should consider when deciding on a type of real estate investment is best for you is why you decided to go into real estate in the first place. What are you looking for — financial independence? A passive income? A pastime you can profit from? Understanding and clarifying your motivation can help you find an investment that truly matches your needs. Decide on your priorities, and use the following guide to find the right investment for you.
One characteristic that defines most real estate investments is inflexibility. Once you put down the money to buy a property, you have limited options moving forward, and it’s hard to find an out if something goes wrong. Fortunately, you have other options that can give you the flexibility you need.
Our Recommendation: REITs
Many REITs require a commitment of at least a year or two, but compared to other types of real estate investments, they’re a short-term commitment. Aside from the benefit of a low buy-in, REITs also give you the option to trade your shares like stock. Your profile is diversified, and you won’t be stuck with one bad investment in an unprofitable property.
One thing that draws many to real estate investment is the allure of passive income. If that is true for you, then it is especially important to choose your investment wisely. Some forms of real estate investment require a lot of time and effort.
Our Recommendation: Rental Properties with a Property Management Company
Buying and renting out properties can provide you with a steady income. However, being your own landlord is a big commitment — one you can avoid. Hiring a third party to manage your property will admittedly cut into your profits, but if your priority is low-maintenance returns, then it is likely worthwhile.
High Effort for High Profits
Not everyone wants to put money into an invisible portfolio and walk away. If you are drawn to real estate investment by the promise of an investment that you can touch and feel, and you want a project where you can directly influence your profits, then your options are admittedly limited. However, that short list should make it easy to choose your commitment.
Our Recommendation: House Flipping
House flipping is the practice of buying fixer-upper houses, renovating them, and selling them for a higher profit. It’s a risky investment option for some, but it’s a great choice if you are trying to benefit from your own rehab skills, like plumbing expertise or past renovation experience. The more work you put in – and the faster you do it! – the more you can benefit from the final sale.
Low Cost, High Profit
Another common disadvantage of real estate investment is the high cost of buying into the business. Qualifying for a mortgage loan and pulling together a large down payment can certainly be prohibitive. However, there are more affordable options available that some may not be aware of.
Our Recommendation: Tax Liens
In some cases, you can buy a tax lien certificate for just a few hundred dollars. In many cases, you can get a double-digit percentage return on your investment. There are rules and responsibilities you need to keep track of, but you have a great resource to help you through the process: GA Tax Lien.
Begin Your Investment Journey Today
If you are looking for an entry into real estate investment or an expansion of your current portfolio, tax lien certificates can be the key. Make the most of them with help from GA Tax Lien! We will work with you toward your financial and investment goals with bootcamps, continuing education classes, and mentorship opportunities. Take the first step and register today to learn from the experts!