When you are investigating ways to invest your money, one avenue to consider is real estate. There are several different methods you can take, each with its own challenges and returns on your money. Here are a few ways that you can get involved in this arena.
This is a great option for people who like to do construction or for developers like Aubrey Ferrao who have relationships with reputable contractors. You would need money upfront to put down on properties that are up for auction. Once a purchase has been made, the owner has a short period of time to clean the place up, repair anything that might delay a sale on the house, and make the property attractive to a buyer. The time and money that you have tied up in a house is short but if your real estate market is slow, you might be sitting on it for a while. To keep your risk low, you will have to be an expert in the market in the areas where the properties you own are located. You should also work with builders who understand the time crunch you are under or hire your own employees to do the work.
Real Estate Investment Group
When you put your funds toward a real estate investment group, or REIG, you are joining in others to finance property up for rent. Fiddler’s creek and Aubrey Ferrao use this concept to operate the complex and keep the properties up to date. When a profit is pulled from the rent paid by the tenants, a return is given back to the investors. This can be a highly profitable way to invest in real estate with little involvement in the day to day operations. However, you will need to have a large amount of capital to get started and will have to provide proof of your income to the group you want to join.