After more than 15 years, as a licensed real estate seller in New York State, I have witnessed neutral buyers, sellers, markets and pretty much everything in between. Since there are several ways to get involved in the real estate markets, it makes sense for people to gain as much knowledge as possible about some of them. Although there are many components, we will try, briefly, to consider, examine, review and discuss, 6 specific types of ways in which one could get involved in the real estate markets and the industry.
1. Personal housing: Most people only get involved with real estate when it comes to personal housing, and what might be best for them. They consider whether they should rent or buy. Another consideration is, if they decide to own a home, what type of home makes the most sense for them. This includes the specific location / region / area, in terms of a variety of factors, such as style / type of home, schools, suitability for specific services, such as shops, houses of worship, transportation, etc., and perceived safety, and attractive, from the region! How much should they spend, both upfront and monthly?
2. Owner-occupied, multi-family: Some try to reduce their personal risks and responsibilities by choosing to purchase a multi-family home (typically a 2- or 4-family residence). The theory is that they then become much more, able to afford their personal housing expenses, by collecting rents, in other units! However, one must seriously consider whether one is prepared for ownership and the associated responsibilities.
3. No – owner-occupied, residential: When you buy any residential property, with the desire to maximize earning power and economic gain, you must understand over time that there is both the potential and the risks. Yes, a country, adequately (rather than overpaying), considering, conservatively, the realistic potential for rental, contingencies / planning, for vacancies, planning and creation of realistic financial reserves, etc., its possibilities, for the Economic gain, it is improved, but, it must be understood, there are always some risks involved. One can get involved in this component by: buying a single or multi-family home and renting it; invest in properties of a real estate group, etc.
Four. Smaller commercial properties: Smaller commercial properties have the potential for profit or loss! Examine the specific location, limitations due to zoning, etc., and the best ways to attract quality tenants.
5. Larger commercial properties: Investing in larger commercial properties provides either the potential for higher profits or losses. Therefore, in addition to the factors to consider, with the smallest ones, it is important to consider whether you are comfortable with the greater amount of risks and reserves, involved and willing to plan accordingly.
6. Planning of contingencies, vacancies, etc: Investing in real estate, offers, potential rewards, as well as being aware of and prepared for risks. It is important to recognize any warning signs, sooner rather than later!
The more one learns, understands, prepares, and proceeds, with full awareness of positive and negative possibilities / potentials / ramifications, the better are his prospects, to maximize chances, for success. Are you willing and ready to move on?