What Type of Real Estate Investment is Right for You?

August 17, 2017 By

Real estate investing entices the savviest of personal equity capitalists – and for good reason. Homes hold their value and provide a wide variety of investment opportunities for those who put in the leg work, but which type of real estate investment is worth your valuable time, money, and effort? Use this guide to help you hone your approach to real estate investing. You’ll see the requirements for each investment category, including necessary equity, required credit score, and estimated time commitment.

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Requirement Charts

Carefully consider your current financial, credit, and available time situations before selecting a form of real estate investments. The Charts below can assist you in identifying your ideal first step into the real estate investment world.

Down payment chart 1024x476 What Type of Real Estate Investment is Right for You?

Required Time Chart 1024x612 What Type of Real Estate Investment is Right for You?CREDIT Score chart 1024x565 What Type of Real Estate Investment is Right for You?

Real Estate Investment Categories

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Rental Condo or Rental Home

Most landlords begin their investment careers by purchasing a rental condo or home, then lease the residential property to tenants on 6-12 month lease-terms.

Small Apartment Building (2-4 Units)

After getting your feet wet with individual condos or homes, you may want to jump into the pool by purchasing a duplex, triplex, or quad. It goes without saying that the investment will be higher for a purchase like this, but the cash flow is sure to flow more freely.

Large Apartment Building (5+ Units)

Buildings with 5 or more units are considered commercial properties and require hefty down payments and healthy credit scores. However, economics of scale often provide the means to hire a property manager, minimizing the investor’s time commitment in such a project and optimizing profit.

Fix and Flips

You find a fixer-upper, fix it up, then sell it for the largest profit possible. The “fixing” process can range from cosmetic updates to “down to the studs” remodels.

Conversion of Apartments into Condos

This option provides tax advantages as compared to fix and flips and often offers impressive financial returns. You purchase an apartment building, renovate it, then sell each unit as a condominium.

Scrapes, Pops and New Construction

Purchasing a small home within an affluent community can have its financial advantages. A small home may have square footage added (via horizontal expansion or a pop-top project) or could be bulldozed to create room for a new home.

Assignments

If you don’t have much equity to invest as a down payment, and/or if your credit power is limited, assignments could be your foot in the door of real estate investing. What you will need is charisma and sales skills – you’ll rely on an investor to foot the bill for an investment contract sourced by you. You get paid for doing the groundwork and the investor you’re working with makes a solid real estate investment through little to no time investment.

For more information about investment opportunities by neighborhood, download our free price change map HERE.

*This blog is an adaptation of a chapter from The Practical Guide to Colorado Real Estate Investing by Lon Welsh, Charles Roberts, Greg Parham, Tony Girard, and Joe Massey. The entire Ebook can be dowloaded for free by clicking HERE!

*Read the original post here.

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Things To Do in Colorado This Summer!

Summer is just around the corner- which means school is almost out- yes I will say that again, school is almost out and that means time to find things to keep the kids busy. Luckily Colorado is the perfect state to get out and enjoy the outdoors! Colorado has festivals, parks and events that are family friendly and easy on the wallet. Here are a few of my favorite to try out this year!

 

Downtown Denver Arts Festival – FREE!downtown-public-art

May 23, -May 25 2014

  • Denver Performing Arts Complex
  • Time: Friday: 4 p.m. Saturday & Sunday: 11 a.m.

The fine art and fine craft exhibition features some of Colorado’s and the nation’s best artists with over 150,000 people expected to attend.

 

Denver Chalk Art Festival- FREE

May 31- June 1, 2014

  • Larimer Square
  • Time: Saturday 10:00am-10:00pm, Sunday 10:00am-7:00pm

This is a two day festival that many artist spend turning Larimer square into a work of art. Take your time walking the streets and look at all the masterpieces!

 

Outdoor Movies in the Park- FREE

These are held a few different locations; the most notable is Red Rocks. I will mention to get ticket ahead of time because it does fill up quickly!

 

untitledChildren’s Museum Free Target Tuesdays

Every first Tuesday of the month is free for kids from 4-8pm. The museum is full of interactive exhibits and they always have daily activities.

 

 

 

Lariat Loop heritage Alliance

You can visit 40 mile scenic stretch- choose from pre-planned trips or choose your own way. The Lariat Loop Heritage Alliance is a non-profit organization that represents parks, open space, indoor and outdoor museums, chambers of commerce, an art center and a shrine. They preserve the historic and natural features along the 40-mile scenic and historic byway and educate the public about those resources.

 

After living in Colorado for some time some people tend to forget the beautiful parks we have at our disposal. This summer try and take some time to make it to Red Rocks, Dinosaur Ridge, Wash Park or take a drive to Garden of the Gods.

 

Ggarden of godsarden of the Gods

The beautiful park and landscape is located 60 miles from Denver but the scenery makes it all well worth the drive. You can make a short road trip out of it, pack a picnic and make a day out of seeing the beauty Colorado has to offer!

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Know where you live; Berkeley, CO

In this video Monica talks about one of her favorite up and coming neighborhoods in Colorado, Berkeley. You will learn about the great things this hidden gem has to offer!

If you are looking to buy a home in Berkeley or in up and coming neighborhood in Colorado call the Monica Perez Real Estate Team at 303-912-3320

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