Is there money outside of Residential Investment?

Through our time with blog posts, we have gone over so many ideas for residential investment, and we haven’t really gone over any other type of investments that don’t necessarily require you to have contact with the end buyer or the end tenant, these kinds of deals are a bit different than the ones you usually hear about, they run differently and they have great returns, certain kinds of investments can be as hands-off as you want them and they are super intriguing so that you are able to have fun and live easily off of them, but before we get too excited let get to the types of investments that could work for you!

First, this is nothing against residential investment, we do it, and we love it, it’s a very particular business that demands a lot from you, and it can be very frustrating because you work with people who live in that property and can be a bit damaging to it, which also means your expenses can go higher each time, but that’s not always the case and not for every single type of investment property is like that, sometimes the bigger the property the better and the more removed the better, for example, a big apartment complex is easier to manage since you probably have more help around and you don’t necessarily are heavily involved in it, you have property managers and people working for you, so it’s more removed and you don’t have to worry far too much about it, or like a mobile home park, where if you only own the lot, your worries are very minimum and you only care for the lot itself, but you can read more about those here.

There are so many types of Real Estate Investments, like Commercial Real Estate, but here’s the catch, sometimes residential real estate investments can be considered commercial, like those apartment buildings we were talking about, but they still fall under residential, however there are other investments in this category that are vastly different from that concept that can be more profitable, or at least, more secure since you are going to be working with specific professionals who you can trust and place contracts that are bounding which will guarantee you a good and steady cash flow.

1- Office buildings!

The fun part of an office building is that if you have it in a good place, there’s always going to be demand for it, and it can become a lovely multipurpose building since you can designate different spaces of it for different things; the coolest part of it all is that you work with people in businesses that are going to stay in for longer periods of time and they, most of the time, pay on time, without delays or any other issues. You can rent it to lawyers, dentists, insurance agents, and many other office-bound businesses with triple net leases which go from 5 to 20 years, and they bound them to pay expenses, like maintenance and repairs, insurance on the property and of course, taxes, this is one of those catch 22 situations, because while this is a great concept, it also has restrictions when it comes to rent increases you make them every two years, so if your building is in an up and coming area, that means your cash flow won’t match the market right away.

All that being said, this kind of investment works wonders, and bleeds into our next category which is mixed investments, since you can have different types of businesses in your office buildings, you can have retail in the bottom and offices on top, or you can have a few restaurants in the bottom and offices mixed in with retail! It’s a bright opportunity for these kinds of buildings, so if you’re looking into it, maybe your next investment could become a cool looking office building smacked in the middle of downtown for a fun and easy going cash flow.

2-Mixed buildings!

You have probably seen what these type of investments look like, you have most likely gone to a big retail building that has different sections of it that work for different types of businesses, from regular retail to offices, to even sometimes residential, these kinds of buildings have different sides and each side has different needs and ways of working, they also have different leases and in our opinion you should have a lot of experience before you go into this while yes you can have property managers, the legal side of this whole thing is highly important for you to be on top of in this specific side of commercial real estate.

3- Retail!

When you were in high school you probably spent a ton of time in these buildings, you might guess what they are, fun and amazing malls! Well, actually, not only malls, it could be those small shopping centers, basically, a place where there’s a group of retail stores in it, in this type of businesses you can also place a triple net lease, so your net profit is basically the price of the rent completely, and in this case these properties are highly profitable, since you have a lease contract with rent increases written into it every so often, your profit just goes higher and higher each time. The best part of retail rentals is the fact that they are always needed, you can actually get them close to some residential and it will be highly popular. Your main concern would have to be the common areas, and even then, it would be a low cost in comparison to your profit!

4- Industrial!

This one is a hit or miss when it comes to the type of property you purchase, however, it can be highly profitable investments, but it does rely on location and market surge; these properties rent for a pretty high price, however, if they’re not in an area with demand for that kind of properties it’s quite difficult for them to be rented, but once they are, they work wonders, and as with must commercial real estate the profit is pretty much always on time and with little to no issue!

There are many other kinds of investments when it comes to Real Estate, these are just a few that we think work absolutely great! What do you think? Do you have a favorite type of investment? Let us know right now!