There are different types of real estate investment companies that can teach you the basics. Furthermore, whether you’re a first-time investor or already own several properties, they can also show you smart ways to invest your money.
There are approximately 28.1 million individuals in the United States that consider themselves to be active in the real estate market. On an annual basis, more than half of these individuals earn over $75,000 from their investments. According to a study conducted by Fortune Magazine, 97% of the millionaires they polled became wealthy as a result of property ownership.
The basics of investing in real estate include purchasing low-priced homes, rather than apartments. These include the purchase of local market foreclosures. In addition to restoring buyer confidence, this practice also assists with stabilizing home prices. These types of investments have become a $100 billion business.
Over half, or 51% of real estate investors, will make down payments of up to 50% when purchasing investment property. This can, of course, reduce monthly payments and potentially free up capital for additional purchases.
Over the next year, investors have reported they have the following plans:
- Purchase additional property: 34%
- Increase the number of real estate purchases: 40%
- Purchase more than in previous years: 26%
Other individuals that own property, approximately eight percent, aren’t currently planning to purchase additional investment property.
Approximately 80% of existing investors haven’t added real estate to their portfolio yet. Real estate investments are graining in popularity with the millennials, however, many of whom are interested in including this of investment within their portfolios. Most of the 80% are actually millennials planning to make real estate investments in the near future.
It’s also interesting to note that 83% of parents that invest are considering buying property for the following reasons:
- To manage with their children
- To provide a home for their children
- To add to their children’s college fund
- To fund current college tuition
In addition to purchasing foreclosures and other homes for sale, real estate investors will also purchase commercial properties. These include business centers, shopping malls, industrial buildings, as well as vacant land. In 2015, for example, these types of properties traded at 4.1% higher, on average, than in 2014.
After purchase, the combined number of investors have spent approximately $9.2 billion renovating their properties. This, of course, increases the value of the properties for resale as well as revitalizes areas known for multiple foreclosures.
Whether you’re considering becoming an investor, are in the process of making your first investment, or have some experience with investing, there are several types of real estate investments that you can make. Once you realize the benefits of working with experienced investors, you will be able to choose between different types of real estate investment companies.
These types of real estate investment companies can guide you through the process of wealth-building. They will be able to teach you the rules for real estate investing and well as smart ways to invest.