REI Wealth Monthly Issue 09 | Page 45

10 ROADS TO REAL ESTATE INVESTING PROFITS TAMERA ARAGON 3. Fixer Upper Investment Property. These types of investment properties are the ones which are in ugly condition and need renovation. These properties can be acquired to flip after fixing-up quickly, or held to rent out. • Advantages: You can receive a quick return on your investment (months). You usually get below market value pricing on properties bringing you instant equity. • Disadvantages: Higher risk. Many unpredictable expenses come up in construction. You get taxed heavily on the gain when you sell in under a year. 4. Vacant Land. Many options including just holding while appreciating. You can also split it and sell it. • Advantages: History has shown that land always appreciates in value (it’s the buildings on the land that go down in value). It is simpler than most real estate investments, with the possibility of great profits. • Disadvantages: It can take a long time to increase in value. You have expenses, but no cash flow while you wait, unless you sell the contract before closing. 5. Commercial Real Estate. These are any building containing 5 units or over, and/or buildings sited for commercial use. • Advantages: Long term triple-net leases mean little management and high re \???[?[??\\?X[H?\?Y?H?[YH?H??\?H??\???[?Y] ????(???\?Y?[?Y?\???[Y\??X[??\?H?[X][??\]Z\?\?H[?H??\^Y]? Z?[??[??X???[?H[???YH?[?X[?H??\?K?\?\??X??[Y[?Y??H[?H^\?Y[??Y?[??\???\?\?H\?H?[?H[????Y??]\[?XZ[?Z[????