Investing in real estate is not an easy process. As a matter of fact, it can be a downright frustrating and irritating thing to have to deal with. Especially if a person does not know where and when to invest. Thankfully, most people have investment managers to help make the process as easy as possible.
However, they still must make decisions which impacts their accounts. The following information will provide high returns for accredited investors by following these 3 high yield real estate investment tips.
Real Estate Investment Trust
A real estate investment trust (REIT) is basically a company that possesses or backs income-producing real estate. They typically invest in ventures such as retail establishments, restaurants or malls. They can own these places and generate income in this manner or they can find good opportunities for investors to risk their money.
An investor simply has to find an organization that provides REIT services and then set up an account with them. Once this has been established they can will usually have the guidance of a portfolio manager or a team of investors to guide the process.
This type of investment opportunity has been picking up over the years. In 2016 investors enjoyed a good return that yielded between 5% to 10%. This is a premium standard for investing within REITs. This type of opportunity is a great way to invest within the unstable arena of real estate investments.
Residential Real Estate Investing
People are always going to need a place to live. While that is standard news for most people; the fact is that residential market is starting to bloom again. There are going to be a lot of homebuyers and renters looking for decent places to live and the market is moving within a positive direction to accommodate them.
Keep in mind that the residential real estate market is predicted to have between a 3% – 4% yield for investors. This is a decent rate of return for such a tough market. In some cases an investor can expect more if the market really picks up within some of the communities across the country.
Residential real estate investing is risky but it provides a great bit of stability as well. Since homes are needed; people will always have to pay for them. An investor who can position themselves in the right market; can benefit greatly from the return on this investment.
Real Estate ETFs
REIT ETFs is a publicly traded index of real estate owners. These publicly traded mutual funds allows investors to risk their money into reputable real estate companies for a solid return on their property. They typically end up receiving a high return on this type of investment.
Keep in mind that many companies that develop or own property typically use this type of market to raise income for their ventures. Most ventures are for developing real estate properties or for expansion projects.
Real estate ETFs are typically sound and stable way for real estate investors to get involved within the market. The return on this type of investment if dependable and it outweighs the risks.
All three of these tips are important for individuals who want to invest in real estate. Ultimately, they will help investors to make the best decision possible with risking their money within the real estate market.