How to Get into Short Term Real Estate Investments

September 20, 2020

As an astute investor, you are probably in the habit of looking for investments that you can turn quickly for a nice profit. An investor with that kind of objective is perfectly suited for making short-term investments in real estate, particularly commercial property.

If this is something you have on your investment bucket list, you might find information about how to get into short-term real estate investments to be useful. If so, here are three different ways you can get involved in real estate on a short-term basis with an excellent chance of securing solid financial benefits.

Taking a Position as a Landlord

If you are interested in making a play as a landlord, you would need to focus on property that offers potential as a rental investment. A good piece of rental property is one that you can secure at a good price with financing at a low rate.

If you have capital to invest, you might want to try a “depressed” home or building that you can get at a bargain basement price. You can use your capital to fix it up and get top dollar rent in return. If you do not have working capital, you will want to find a property that is ready for renting or already under lease.

The decision to become a landlord demands your scrutiny. The advantage is you can generate a great source of cash flow while the property appreciates. On the downside, you get the headaches of maintenance and dealing with problematic tenants. Of course, holding the property for only short-term appreciation will minimize the downside. Also, as Bighorn Rentals suggests, you can hire a property management company if you don't want to deal with all the landlord's responsibilities.

Invest in R.E.I.T.

If you would be interested in a rental investment strategy that does not require you to actively participate in fixing or managing the property, you might want to consider an investment in a Real Estate Investment Trust (R.E.I.T.).

In the real estate investment community, this type of an investment would be on par with investing in a stock mutual fund. Instead of investing in companies, you would be investing in trusts that invest in commercial real estate.

Your participation would require that you purchase shares in the group from which you would proportionately share in the profits, which are paid as dividends. You could also trade your shares quickly on the open market, giving you an opportunity to benefit from an increase in share value.

House Flipping

If you have some working capital to get started, you might want to consider buying depressed residential real estate, fixing it up, and immediately listing it for sale.

If you keep your eyes open, you can find some really good deals with brokerage sites like this Avery Carl site. After securing the property, you would need to assemble a good construction crew that could get in and make repairs/refurbishments in short order.

The goal is to get in and get out as fast as you can while securing top dollar at sale. The key to having success as a “house flipper” is to make sure every upgrade dollar you would spend will translate to some multiple of profit when you sell the property.

Bottom line: Short-term real estate investments hold great potential if you invest time learning how to proceed the right way.

 

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