Eleven exciting types of passive real estate investment

BY Luis Noronha / ON Feb 28, 2019

Investment for capital gain

  1. Land bank
    Investment often means getting to know a bunch of obscure phrases and having to work out what they mean. That’s not the case here! Investing in vacant land is just like putting money in the bank, except it will earn far, far more interest.
  2. Development
    If you invest your money in vacant land in the right location you can get a great return: but if you’re willing to put in a little more work and investment to get the land developed it will be worth even more. The investment cycle will be long, typically 25-35 months.
  3. Fix & Flip
    House flipping involves buying a low-priced property, then improving it to sell it at a profit. It sounds simple, but it’s not easy or quick work to find properties at the right price; find contractors who can do the requisite work quickly and well; list the property at the right price; find a buyer and negotiate an offer, and close on it. These factors make it the perfect candidate for the turn-key model of investment. This is a short cycle investment of 4-8 months.
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Types of investment for Recurring Income

BY Luis Noronha / ON Feb 10, 2019

SFH – Single Family homes

This is the classic landlord-tenant model of real estate investment: the landlord buys a property, rents it out to a single household, then pays the costs of mortgage, maintenance and so on while receiving the rent as monthly income – which goes up enormously once the mortgage is paid off.

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Three things to know before investing in Real Estate

BY Luis Noronha / ON Feb 10, 2019

  1. Understand the real estate cycle before investing

    The first thing we need to know to start to analyze any real estate opportunity is to understand where we are on the real estate cycle. And this is extremely local. What happens in a specific neighborhood might be completely different from 5 miles away. Are we on an uptrend or downturn? How long has the market been on that stage? What are price trends signaling? Is the market changing or close to a change?Although there are good real estate investments in every cycle, different markets require different approach and investment strategies.

  2. Follow demographic trends

    Nothing is more powerful then demographic trends. They can override economic cycles creating a different reality in a specific city or state. Fundamentally, we need to be aware of the social-economic changes. Watch out for migration and age shift trends as they require specific products and services.

  3. Always buy cheap

    It is very difficult to make returns out of an overvalued property. Do a thorough real estate comparables analysis before any purchase.