Different Ways To Invest In Real Estate By Mohit Bansal Chandigarh

Investing in real estate can be very profitable. You can get rich in no time if you know what you’re doing. But investing is not always an easy task. There are certain things you should keep in mind. Besides, there are many ways in which you can invest in real estate. Deciding how to invest in real estate to maximize the profit can also be a little hard. In this post, Mohit Bansal Chandigarh talks about the various ways to invest in real estate so that you can make the most  of your profit. 

Without further ado, let’s talk about these profitable investment options you have:

House Flipping

House flipping is one of the most popular and short-term real estate investment strategy in which you buy distressed, low-valued properties in hopes that its value will increase in future with time. Being an investor, you will buy the property, rehab and flip it within 90 days. You can get a good Return on Investment on your property. If you manage to get an ROI of 20% or higher, then it is a very fair deal. In 2017, more than 200,000 houses were flipped and average gross ROI for those houses was 49.8 percent. But keep in mind there are several risks involved with this kind of investment. It is not as easy as it looks on the television. Mohit Bansal Chandigarh says if you do your research well, you can make a huge profit.

Buy and Hold Real Estate Investment

Buy and hold real estate investment is different from house flipping. In this, investor buys the property and rents it for quite a while. Investors generally hold the property for five years or longer. And they receive monthly rental income and rental property tax benefits. A decent ROI on buy and hold real estate investment is generally around 7 percent. Investors have seen an annual ROI of 9.06 percent on these kind of investments. Mohit Bansal Chandigarh says this can be a very profitable investment and can make you rich in long run.

Investing in Vacation Rental Property

This is one of the hottest real estate investment option. Here, you can make an investment while also enjoying at the same time. Mohit Bansal Chandigarh says that in this type of investment, investors purchase vacation rental property and they use it for some part of the year and then rent it out for the rest of the year. The Return on Investment varies with the property. In some areas, ROI can go upto 90 percent while in other it can stay in single figure only. It totally depends on the occupancy rate in the area. 70 percent or more is considered a good occupancy rate in case of vacation rental properties.

Commercial Real Estate

Well, this is another popular real estate investment strategy which is used by experienced investors and small business owners. These properties are used for business purposes and not as residences. You will find commercial real estate more expensive than residential properties but they have the ability to generate more cash flow. Mohit Bansal Chandigarh says that investing in commercial real estate. ROI of 15 percent on commercial real estate is considered a good deal. But the average ROI lies around 10 percent. Investors, in general, make money by cash flow from rental income. Investing in commercial real estate can be quite profitable but be aware of the several risks involved in it. And the costs can potentially eat up your profits.

Investing In Real Estate Investment Trust

Now, this is a passive real estate investment strategy. Investors invest in public or private corporations which further invest in portfolios of the properties. But here, you have no control over what REIT buys. They can purchase any property they want. Besides, these REIT are modeled after mutual funds. And these REITs own real estate in some specific segment of the market. Mohit Bansal Chandigarh says it is a good way of generating passive income. The average ROI for this kind of investment is around 10 percent. This is what we get on buy and hold real estate investment as well. But with any kind of investment, there are risks involved with this investment as well. You have no control over which property to choose. And also, you may also receive lower returns.

So, these were some of the best ways to invest in real estate. Investing in real estate through these ways can make you rich. You can make a profitable investment if you do your research right. Mohit Bansal Chandigarh says with time and experience, anyone can become a successful real estate investor.