5 Simple Ways For Making Lucrative Real Estate Investments

Real estate has become a money generating avenue for investment, for both corporations and individuals that has also provided an impetus for the economy to burgeon. Alon Solomon gives a clear insight into the dynamic and growing domain of real estate and how investments in it prove highly remunerative for people. Here is a quick look:

1. Basic Rental Properties
This is perhaps an age-old practice prevailing in the sector that involves buying a property by the owner and renting it out to a tenant on a contractual basis. The rent charges sought to cover costs like taxes, mortgage and cost of maintenance. However, the choice of tenant becomes an important consideration to avoid complications of property damage and delayed rent payment.

2. Real Estate Investment Group
This option gives people an opportunity to own rental property but keep the hassles of landlordism away. The real estate investment groups purchase or construct a set of condos or apartment buildings and allow investors to buy them through the company. The company takes care of all the aspects like maintenance, advertisements and interviewing tenants. A part of the monthly rent is charged as a commission by the company.

3. Real Estate Trading
Popularly known as flipping, this process of real estate investment is far away from the prevalent buy-and-rent landlordism. The real estate traders by the properties for a short period of time (usually for three to four months), after which they reckon to sell it profitably. Flipping involves buying properties that are undervalued or overvalued in the market and is a popular short-term investment for people.

4. Leverage
Leverage distinguishes real estate investments from that in stock markets because of the difference in the initial payment requirements. Unlike the stock market that requires the full payment of stock during purchase, there are a few real estate investments that require only 5% of the total value. This however is dependent on the location of purchase but juxtaposing both options reveals that real estate investment brings greater leverage to investors such as
Alon Solomon
The aforementioned ways can make investments highly lucrative for investors and give them good returns in the long run.

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