Real estate can easily be a part of your investment portfolio, promising relative immunity from minor market fluctuations and, in some cases, returns that can dramatically outperform the market. To make real estate investing easy for even beginners, Pinnacle Residential Properties, one of Wellesley, MA's best real estate agencies, offers expert advice on how to enter this potentially lucrative market.
If you're new to real estate investing, they recommend looking into:
- Rental Properties: While they may not provide the spectacular returns some house flippers enjoy, buying a rental property and leasing it out carries less risk and more long-term gains. The profitability of your investment does depend on finding a house in a good location that tenants will want to rent, so it’s best to work with an experienced real estate agent.
- Real Estate Investment Groups: Purchasing a share in a real estate investment group can be an excellent way to take advantage of the growing market while minimizing your exposure to risk. These groups function like mutual funds, where you purchase or build a development and rental homes, and then rent them out to prospective tenants. The group handles maintenance, repairs, and marketing; however, the fees can sometimes make the investment less profitable.
- Real Estate Investment Trusts (REIT): An REIT allows a large group of investors to leverage their funds to buy and manage several different investment properties. Unlike other companies, Real Estate Investment Trusts must distribute 90% of their earnings as dividends, making them an attractive source of regular income for beginning investors.
With years of experience and an in-depth understanding of the local real estate market, you can rely on Pinnacle Residential Properties to help make your firsts steps into real estate investing a successful endeavor. To learn more about their range of services and unmatched expertise, visit their website or call (781) 237-5000 today.