In terms of investment options, real estate is always a good choice. Knowing this, many people presume that the only way to invest in real estate is what we’ll call the standard model, which tends to go something like this:
- You purchase a brick-and-mortar property from a (usually domestic) seller
- You can then either make improvements to the property and sell it on at a profit, which is most commonly known as house flipping, or…
- You improve the property to ensure it is habitable, then rent out to tenants, earning a steady monthly income as a result.
The standard model of property investment works well for many people, and could well be worth considering – but it’s important to know that there are other choices worth exploring, too. Below, we’ve put together a few ideas for real estate investments that are outside of the standard model, but could nevertheless be beneficial for your financial future…
1. Invest in a mobile home park
A mobile home park may not initially sound like a great investment opportunity, but there are a number of benefits you could enjoy if you explore this route:
- Mobile home parks are far more affordable than standard properties
- Mobile homes are popular; more than 20 million Americans currently live in a mobile home
- Mobile homes can be far less problematic than standard properties in terms of maintenance, making them a relatively stress-free investment opportunity
Given the above, mobile homes are an undeniably promising – if somewhat surprising – way of investing in real estate.
2. Look for tenancy-in-common (TIC) properties
When investing via the standard model, people purchase an entire property; tenancy-in-common (TIC) properties, on the other hand, have multiple owners, so many of the downsides of the standard model are immediately assuaged. Furthermore, the process of buying these properties genuinely is far simpler than buying a property outright; most properties already have tenants in place, there are usually no closing fees, you can exchange TIC properties in future if you require, and by and large, the investment is a “hands-off” experience. As a result, if you’re looking for a simple method of investing in real estate that is nevertheless capable of delivering good returns, TIC could well be the right choice for you.
3. Buy land
It is widely assumed that when people purchase land, they do so with the intent to use that land for a specific purpose – most commonly, to build a house or houses. However, you don’t have to purchase land and then immediately start to build. You could, if it suited your finances, buy a great plot of land and then do relatively little with it for the next few years. You can then build in future when you have the funds to do so or, if the value of the land itself has risen in the intervening years, sell the plot itself on at a profit. Either way, there’s value to be found in land – even if you’re not immediately able to use that land for any specific purpose.
While the standard model of property investment can be lucrative, it’s far from the only option available. By considering the above real estate opportunities, you’re all the more likely to find a method of investing in real estate that is suitable for you, your budget, and – ultimately, your financial future.