Real Estate Investment: What’s Right for You?

Deborah Lopez

In a previous article, I talked about building wealth by investing in real estate.  Even in difficult market conditions, this strategy can provide you with a significant return. 

A key to success is to identify the type of investment property that best aligns with your goals and investment strategy!

by Deborah Lopez, San Francisco Realtor

What Kind of Property is a Good Real Estate Investment?

Investment property can be anything you purchase for the specific purpose of investment!  This includes everything from land, condominiums, houses, apartment buildings, office buildings or even commercial shopping centers.   

What you purchase is determined by the time and effort you want to dedicate to this part of your life.

Turn-key investments handle everything for you – all you do is sit back and cash the check. You can use your unit a few weeks a year, keep it furnished and then rent it on a weekly basis to vacationers.  Or, the property management team will find you a long-term tenant.   

Another option for hassle-free investing is putting your money into a tenancy-in-common commercial investment.  By doing that, you get a percentage interest in a big shopping center, office building and/or apartment complex.   You get a return, an income check and all the tax deductions; however, your exit strategy may be limited.

Or you can do it yourself – buy a property, handle the rentals, take care of the tenants and pay yourself the management costs.  Tenants and toilets can be a drudge for some, but for others, it’s an exciting part of creating wealth. 

Evaluating the level of involvement you want is part of the process I go through with you when setting up an investment strategy.

Where Can You Buy? 

The options are limitless and can provide you with some fun!  Of course, if you are managing your property yourself, you will want to buy something close to home. 

But the IRS allows you to deduct the costs of travel to inspect your investments twice a year, so why not consider something in a place you always visit or would like to always visit?  How about a condo in Paris, Buenos Aires or Tel Aviv?   What about a duplex in Portland or Arizona?  Or an apartment building in Manhattan?   

There are management and tax issues involved in owning real estate in far away places. But they can be offset by the pleasure of  travel when you simply have to go visit your property! 

Every market offers unique opportunities to build your wealth with real estate. There is no time like the present to get started on building your real estate portfolio.  If you would like to learn more about how to develop your real estate investment strategy, please call me!

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Tags: DLo, Money, Real Estate

Category: Real Estate