When we hear someone talk about investing in real estate they most likely are referring to property investment and real estate wealth. There are many different ways that people can invest in real estate. Many times people will tell you that they are not going to be investing in real estate and that they are only going to be investing in residential rental properties. This is a misconception that I hope you do not fall for because real estate can be an excellent way to invest. If you are interested in real estate investing then you should be very familiar with the various types of real estate investing. Here are some of the different types of real estate investing:
There are 5 easy ways to build wealth via property investment: cash flow, capital gains, principal pay down, sweat equity, and forward financing. Cash Flow. Real estate always has the potential to appreciate over time. If you have an existing property that you currently rent out or if you own a piece of land that you could lease or sell then you have an option for creating a cash flow from this property. Cash flow from investing allows you to create money from real estate by investing in low-cost rental properties that you can quickly turn around and resell.
Capital Gains. Real estate investments can yield large capital gains, especially if you have rental income coming in. Some great real estate investment strategies are turning rental properties into capital gain real estate by reinvesting rental income into the property. Another method for creating capital growth is through short sales which can oftentimes equal or be close to closing costs of buying a property.