Real estate investing may or may not be your thing. While real estate is considered lower-risk than other types of investments, there is some level of risk to all investing, and nothing is guaranteed. The greater the risk, the greater the reward potential, of course. Real estate is a hard asset, which means there is something tangible backing it. Read this article to learn more about risk in real estate investing and how you can minimize it.
You know what you want: a passive income. You are interested in watching your wealth grow. You know that it’s possible: to see real growth while also enjoying time with your family and everything else that matters to you. Commercial real estate syndication would make sense for you. Normally, these require an investment over of $50,000, but there are a few select opportunities starting at $25,000. On a smaller scale, turnkey rentals are available too. Learn more about commercial real estate syndication here.
You are just testing the waters, and you want to invest a small amount of money while you’re learning. Crowdfunding makes sense as a first step. You can start by investing as little as $500 and grow from there. To learn more about passive investing and crowdfunding, check this out.
As an active investor, you own single-family properties. Fix-and-flips, wholesale, house-hacking: these and other strategies add up to you. You are looking at a short-term strategy, turning in cash under a year. You can learn more about this type of investing here.
You’re a true go-getter – an active investor. The day-to-day goings-on and happenings are important to you. You offer passive investors time and expertise, taking charge of market research, property analysis, broker relationship management, contractor oversight, and accountant oversight. Check this out – and learn more about leading a commercial real estate syndication.
A passive investor, you are interested in single-family properties. You provide financing for fix-and-flips, filling the role a bank would fill. You receive your initial investment plus interest in a year or two or less, as opposed to syndication where you would wait 5 to 10 years. It may make sense for you to shift over to multifamily syndication so that you can share your risk with other investors. Learn more about this type of investing here.