Real estate investing can be a risky endeavor, but it can also provide high financial returns for the property owner. The investment property you should buy, however, is determined by what goals you have for the purchase. In other words, some properties can get you quick cash, while others are better suited for long-term gains. The realtors with Lawrence Realty Inc. in Red Wing, MN, have nearly seven decades of experience helping prospective investors and want to explain how you can buy the perfect property.
Investment Property for Quick Returns
One way to make quick money with investment property is through a wholesale strategy. In a sense, you purchase a property for far less than it’s worth. Then, you quickly sell the same property for a slightly higher cost. The difference in price is the profit you’ll make. Typically these deals are done between multiple investors and require less money from you upfront.
You can also do a quick sell directly to an individual looking to buy a home. In this case, you will purchase a real estate listing at a low cost, invest some of your own money to remodel, and then sell the home for a profit. This practice is commonly referred to as flipping houses.
Investment Property for Long-Term Gain
If you value consistent cash flow over a quick profit, you should consider owning rental property. With consistent tenants, you will eventually recoup what you paid for the home and then some. The only downside is you are usually responsible for maintenance and other unexpected costs.
Similar to a rental property is a lease property. In this setup, you will lease the space to the tenant for an agreed upon amount of time, after which the tenant can choose to purchase the property from you. A main difference between leases and rental agreements is you cannot change pricing or stipulations during the life of the lease, where rental property is typically month to month.
Real estate investing can be a great source of financial freedom. Employing the help of a qualified real estate agent increases your chances of finding the ideal investment property. When you’re ready to make a purchase in Red Wing or the surrounding area, give the professionals at Lawrence Realty Inc. a call at (651) 388-4745. Visit their website to get a head start on your search.