After, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, I have witnessed, Buyers, Sellers, and Neutral Markets, and, nearly, everything, in – between. Since, there are various ways, to get involved, in the real estate markets, it makes sense, for individuals, to gain, as much knowledge, as possible, regarding, some of these. Although, there are many components, we will attempt to, briefly, consider, examine, review, and discuss, 6 specific types of ways, one might, get involved, in the real estate markets, and industry.
1. Personal housing: The majority of people, only, get involved, with real estate, as it relates, to personal housing, and what might be, best for them. They consider, whether, they should rent, or buy. Another consideration is, if they decide to own a home, of their own, what type of housing, makes the most sense, to them. This includes the specific location/ region/ area, in terms of a variety of factors, such as house – style/ type, schools, convenience to specific services, such as stores, Houses of Worship, transportation, etc, and perceived, safety, and attractiveness, of the region! How much, should they spend, both, up – front, as well as, on a monthly basis?
2. Owner – occupied, multi – family: Some try, to reduce their personal risks, and responsibilities, by choosing, to buy, a multi – family house (usually, either, a 2 or 4 – family residence), The theory is, they then, become, far – more, capable of, affording, their personal housing costs, by collecting rents, on other units! However, one should seriously, consider, whether, he is prepared, for being, a landlord, and the associated responsibilities!
3. Non – owner – occupied, residential: When, one purchases, any residential property, with the desire to maximize, earning power, and economic gain, over – time, he must understand, both, the potential, and the risks, exist! If, one pays, properly (instead of over – paying), by considering, in a conservative manner, the realistic rent – roll potential, contingencies/ planning, for vacancies, planning, and creating realistic, financial reserves, etc, his possibilities, for economic gain, is enhanced, but, it must be, understood, there is always, some risks, involved. One may become involved in this component, by: buying a one, or multiple – family house, and renting it; investing in a real – estate group’s properties, etc.
4. Smaller commercial properties: Smaller commercial properties, have the potential, for profit, or loss! Examine the specific location, any limitations due to zoning, etc, and the best ways, to attract, quality tenants!
5. Larger commercial properties: Investing in larger commercial properties, provide, either, the potential for greater gains, or losses! Therefore, in addition to the factors, to consider, with smaller ones, it is important to consider, whether, you are comfortable, with the increased amounts of risks and reserves, involved, and willing, to plan, accordingly!
6. Planning for contingencies, vacancies, etc: Investing in real estate, offers, potential rewards, as well as being aware of, and prepared for risks. It is important to recognize any warning signs, sooner, rather than later!
The more, one learns, understands, and prepares, and proceeds, with a thorough awareness of the positive and negative possibilities/ potentials/ ramifications, the better, his prospects, for maximizing the chance, for success. Are you willing and ready, to proceed, forward?