Unconventional Real Estate Investments to Help You Build Wealth in Redlands

Investing in real estate is a great way to build wealth – it has worked for a lot of people for a long time. When it comes to real estate investments most people think of buying and holding (typically rental properties) or house flipping. There are, however, many more viable options than just those. It all depends on your financial situation and your investment goals and objectives. So let’s take a look at some unconventional real estate investments to help you build wealth in Redlands.

Real Estate Investment Groups (REIGs)

The first of our real estate investments to help you build wealth in [marekt_city] is something called a real estate investment group (REIG). REIGS are great for people who want to own investment real estate without the hassle of being a landlord or managing properties. All it requires is a capital cushion and access to financing.

REIGs are much like small mutual funds that invest in rental properties. With a typical REIG, the group purchases or builds condos or apartment blocks. Investors are then able to buy into these through the company, which makes them members of the group.

The upside for investors is that the company operating/overseeing the REIG manages the investment property units, taking care of all the various duties such as maintenance and acquiring and vetting tenants. Investors, then, don’t have to deal with any of these burdensome tasks. In addition, because rents and income are pooled, investors continue to see some profit as long as the vacancy rate doesn’t get extremely high.

Real Estate Investment Trusts (REITs)

Another of the unconventional real estate investments to consider is the real estate investment trust (REIT). This is a way for both experienced investors and beginners to get into the game without actually having to personally buy and own property.

REITs typically contain a collection of various assets, they are traded on the stock market, and they pay regular dividends. This, then, is a good option for people who want to get into real estate investing, but don’t have a lot of money to work with.

When you buy shares in a REIT, you earn a share of the income produced in proportion to your investment. You’ll also have several investment options to choose from because different REITs invest in different assets, some, for example, owing buildings and others owning mortgages.

Real Estate Limited Partnerships (RELPs)

Yet another of the real estate investments you should know about is the real estate limited partnership. An RELP, unlike an REIT, is a private equity investment, which means that it isn’t traded on any public exchange. Further, RELPs typically don’t pay out regular dividends.

If you want a quick return on your investment, this may be an investment avenue for you. REIPS are designed as short-term investment vehicles that typically earn a lump sum when the term is reached. When the RELP project reaches completion, money is paid out, and the partnership is dissolved.

Online Investment Platforms

Really, online investment platforms are basically just crowdfunding. So they are basically platforms that connect individual investors with real estate developers trying to raise capital for various projects. 

Developers, instead of getting their funding through, say, a bank, sell equity stakes and then offer quarterly or monthly payouts to investors via online channels. Typically, you can get started and open an account with one of these with a minimum deposit, which can often be as little as $500.

Foreclosures REO Properties

While this isn’t strictly one of the unconventional real estate investments to help you build wealth in Redlands, it remains nevertheless a great way to pick up investment properties at a great price. And that makes it worth mentioning as a way to help you build wealth in Redlands.

When a homeowner fails to make mortgage payments, the typical result is foreclosure. The lender repossesses the property and then tries to sell it at auction. If a buyer can’t be found, then the property becomes real estate owned (REO). Often foreclosures and REO properties are priced well below market value and so represent great investment opportunities.

And Be Sure to Partner With the Best

So if you want to get started in real estate investing (or just broaden your portfolio), there are many more ways to do it than just buying and holding or buying and flipping. But to succeed, it does take a good bit of investment property and market knowledge. And that’s exactly where an experienced Redlands agent can help. If you want to build wealth in Redlands and are interested in any of these unconventional real estate investments, be sure to contact us today at (951) 232-9704.

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