The perfect real estate investment is one that has high returns and very low risks. To achieve this, you need to be able to make smart decisions. The following three things make for an excellent real estate investment to help you get started.
The first thing is to find something with a good return on investment. To invest in the illiquid asset that is real estate, you will have to take money out of your liquid assets. You need to make sure that the rate of return you get is similar to the one you were getting through liquid investments. Basically, you must find good cash flow properties, not money pits.
Next, you must make sure your investment isn’t too risky. There is no such thing as risk-free real estate, but some risks are too high to take. Try not to choose private real estate funds, fixer uppers, real estate development and tenant-in-common options. Invest in these options and it is unlikely that you will ever see a return. A much better idea is to title interesting properties to yourself. Naturally, this means you need to take the time to do research and analysis, and you must exert due diligence. N