The real estate investment market is wide open to people at every level of experience. For those just starting out in the investment property arena, it is helpful to remember that even the big property moguls who are managing large construction projects or have portfolios of multifamily rentals in multiple cities had to start somewhere.
Manageable Real Estate Investments
For new property investors, the best strategy starts with finding real estate that is not only affordable and can generate revenue, but it also needs to be manageable. Most newcomers to investment real estate start with rentals or by flipping properties. First-time rental properties are usually converted basement apartments, an outbuilding, or even a duplex in the same neighborhood. Investment properties such as these generate predictable monthly income, which can pay for renovations, upkeep, property taxes, and provide revenue that can go straight to the bank. In the case of fix and flip properties, the idea is to put in the work to renovate it so that the house will sell for more than the initial price plus the rehab budget. Fix and flip projects are slightly more complex than rentals, and may involve hiring contractors to turn a run-down property into an attractive home. While rentals generate continuous revenue, a fix and flip project generates a lot of income at once when the property is sold.
Growing Your Portfolio
Whether you want to dabble in commercial real estate to supplement your existing income, or if you want to transition away from your regular 9 to 5 job and let your properties generate wealth for you, it helps to grow your commercial real estate portfolio. Think of it this way – if a single rental unit can generate reliable income every month, multiple units will only increase that amount. If one fix and flip project can generate more income than a lot of people earn in a single year, then tackling two or three at a time can build a sizable nest egg in a short period of time. By taking a portion of the revenue from each property and reinvesting it, and by working with a reliable financing partner, you can go from being a novice to growing a lucrative property portfolio very quickly.
Financing Real Estate Investments
At Nanaki Capital, we provide financing solutions to new property investors and seasoned pros alike. From fix and flip projects and multifamily rentals on up to large construction projects, we provide financing tailored to fit undertakings both large and small. Contact our offices today to learn more about our commercial real estate financing solutions.