The key to investing in real estate is first determining what type of real estate investment is suitable for your portfolio. There are different types to consider, each with unique benefits and profitability. To help you decide which investment to pursue, we have outlined a few options for real estate investors.
Residential Real Estate
Residential real estate is probably the most widely known real estate investment. Here are a few property types to consider.
Long-term rental property: A long-term rental property is a piece of real estate you buy to rent out to tenants. This property can be anything from a multifamily apartment building with multiple units to a small, single-family residence.
Vacation rental: This type of investment is like owning a long-term rental property. You buy a property, typically in an area popular with tourists, and then rent it out to visitors who stay in it for a short time.
Fix and Flip: Flipping a house is one of the most active investments you can take on. When you flip a home, you purchase a fixer-upper in desperate need of repairs, then make improvements to sell it at a profit.
Commercial Real Estate
Commercial real estate refers to real estate investments that are typically non-residential. Offices, warehouses, and shopping strips are examples of commercial real estate investments. Down payments and monthly rent payments on commercial rentals can be higher than residential properties. It may also take longer to fill vacancies.
If you’re considering investing in residential or commercial properties, doing your due diligence requires more than coming up with a down payment. Knowing your local market is also essential. Property values may decrease if there isn’t much demand for homes or commercial space in your area, and that investment could quickly become a burden. Always do your research and reach out to your ILS team should you have any questions.
Investor Loan Source, a private money lending company, provides high-quality investment property loans to private real estate investors at the lowest costs possible. Our process for providing real estate investors with private lending is unique. We place emphasis on the hard asset and value of the collateral (property) and less on the borrower. Our asset-based real estate investment loan model means we can provide more money lending to more investors than is available from standard bank loan models. At Investor Loan Source, providing real estate investors hard money loans is our business; it’s all we do. We offer several business real estate loans products designed to serve a variety of investors and property profiles, including private money lending for properties to sell on owner finance.