All of us want to secure a consistent revenue stream, and one of the best ways to do this is by investing in real estate. If you are new to the game, here are a few tips to help you get your feet wet and start you on your journey to real estate investing.
Understand the Types of Real Estate
One of the first things to understand is that there is private real estate and commercial real estate. Commercial real estate mainly includes businesses who are your tenants whereas private real estate is for the general public to be tenants. For example, large investors will hire a private equity real estate manager Manhattan NY to acquire multiple or large pieces of real estate. Areas such as New York have some of the most expensive real estate markets in the country, which is why private equity firms will pool money in order to afford large properties in areas such as these.
Invest in Multi-Unit Dwellings
If you don’t have the backing of a private equity firm behind you, one of the simplest ways to get your feet wet is by purchasing another single-family residence, or better yet, a multi-unit dwelling. Multi-unit dwellings simply means that more than one individual can live at the property and pay rent, such as an apartment complex, or a duplex. These sorts of properties are the best way to increase your revenue stream as having multiple income streams is always better than only having one. By having multiple streams, you can better absorb the loss if you have a tenant leave unexpectedly, or if there are damages that need to be repaired.
The world of real estate is very large and expands across several different markets, which is why having an agent who understands the ropes and can help turn you to profitable properties is a must.