Do you dream of becoming a real estate investor? Talk about real estate investments, and most people think of residential homes, and they’re right. It’s a great way to get started investing in real estate and provide security for whatever comes your way. As costs go up, the rent you charge goes up also meaning if you own enough homes or other real estate holdings, you can have a comfortable retirement.
Before you dive into real estate investing, however, make sure you have sufficient funds saved up. Stefan Soloviev proposes that you have enough money saved to live on for three to six months. If you find yourself injured or out of a job you won’t go bankrupt. Make it a habit to set aside ten percent of your net income each month and discipline yourself to not touch it. Then start saving for your real estate investing.
These are places retail businesses need, including storefronts as well as shopping and strip malls. It’s also a common policy for the tenant to pay you a percentage of the sales. It’s a way to keep your tenant motivated to maintain a nice-looking building and be sure to operate at a profit.
Office buildings fall into this category along with other buildings that companies and small businesses rent to run their businesses. Typically leases on such buildings run for more than a year, meaning you have a stable source of income for years. Because such investments can be costly, you may need to go in with other investors in some kind of arrangement to afford it.
These include storage buildings, warehouses and even car washes. Buy a car wash facility, and you not only collect rent but also earn extra income from those coin-operated vacuum services.
Combined Use Buildings
Think of a large, high-rise building that has a gym in the basement. Then it has shops and a restaurant on the main floor and offices on the upper floors. By investing in such a building and then renting it to a number of different clients, you earn money from several sources reducing your risk of loss and generating a more source of income.
Investing in these types of real estate may require more cash, so start with residential homes and work your way up when you have sufficient cash flow. You’ll have a comfortable retirement in no time.