Top 4 Investments, According to the Experts

Finding the best investments in the real estate market can be the difference between your success and failure. When you get started in real estate investment, you will find yourself with many options. While it is possible to succeed in many ways, you can increase your chances of success by sticking to what the experts recommend.

1. Buy and Hold

The buy and hold strategy of real estate is a time-tested method that still works today. This is definitely a long-term investment strategy. With this method, you are going to buy the property and plan on holding it for the long-term. Regardless of what you do with the property while you have it, your main objective is to accumulate equity in the property. You can then sell the property and realize a profit or refinance it and take the cash out. 

2. Apartments

If you have a large amount of money to invest, apartments can be a great investment in real estate. With a good apartment complex, you can bring in a steady stream of cash flow every month. A good property management company can take care of leasing the units for you and keep occupancy rates high. 

Owning apartments is also a long-term proposal, but it can definitely be worth it. The property will appreciate and when you are dealing with millions of dollars, the potential returns are huge. You will be able to count on a certain amount of monthly operating income as well. 

3. Commercial 

Commercial real estate investing is perhaps the area that has the biggest potential for profit. There are a lot of ways to invest in real estate but one of the most profitable is by getting a long-term tenant. Many commercial property owners set up triple-net leases for their renters. This means that the property owner collects a monthly rent, but does not have to maintain the property. The tenant pays the repairs, part of the taxes on the property, and their own insurance. As the owner, you just sit back and collect your check. You will still have to take care of major problems that might arise, but overall this is a hands-off investment. Some of the more successful businesses will sign 20 year leases also. This means that you can set up a long-term source of easy income.

4. “-Plexes”

If you want to do things on a smaller scale, investing in “-plexes” is a good investment strategy. A "-plex" is a property that has more than one unit. Most lenders will not finance more than 4 units. Duplexes, triplexes, and 4 unit properties allow you to procure easy financing, without investing huge amounts of money. A very popular investment is to live in one side of a duplex and rent out the other side. Most of the time the rent payment will cover your mortgage on the side you live in. You will be building equity and living for free. 

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