I've known for quite some time that I want to invest in real estate. I've been thinking lately that I'm about ready to begin. My interest first took the form of some kind of beach/vacation home on the coast down south. A place the family can use a week or two each year, and rent out the remainder of the year. Next, I found myself wondering whether it might be better to start with something residential and close to home. Being nearby and having long-term renters sounds on the surface to be less risky and more manageable. After that I thought maybe a duplex or other multifamily home - something where if you get one bad renter, the others help mitigate the loss. The more I think about it, though, the more I find myself interested in commercial investment, not residential. I always thought that maybe that was something for later down the road - my thought process has always been that commercial probably requires more capital up front. But is that true? Do you really need capital? Couldn't I locate a cheap & vacant lot, form an LLC, and take out a massive business startup loan to purchase and develop the land and fund the up front cost of a property manager that will help make sure the building remains full of tenants?
I’m sure my green is showing in more than one place here. Of course, I would imagine an undertaking like this would require incredibly in-depth demographic and feasibility studies among other things - worst nightmare is to be in debt with your only asset being a beautiful new but vacant building in a location no one wants to be. But I wouldn’t even know where to go to learn more about this stuff. Or whether I’m on the right track or somewhere in outer space. I hope you will all find it in your hearts to help guide me in the right direction. Or maybe throw a line to a space cadet floating away and pull me back down to Earth.
Thanks in advance!!
