Today, I wanted to take a look at some of the various types of real estate investing that is available in this marketplace. First of all, an investor can look at buying commercial or multifamily properties. Generally investors of this type are looking for four unit to 300 unit buildings. Cash flow potential for this type of building is outstanding. And currently in today's market of increasing rents and increased rental demand, this remains an extremely popular type of investing.



Secondly, and investor may look at buying preconstruction. This was far more popular five to ten years ago when the real estate boom was in full swing. Investors would want to lock in on today's price, and close on a property two to three years later when it was completed. In principle, this can work out great. However, we know that homes all over the country have not seen appreciation over the last few years. So investors have not of course seen the profits they had hoped to.

Third of all, an investor can look at simply rehabbing homes and flipping them. Again however, in this tougher resale real estate market, investors are unable to flip homes for profit.

Because of this, last of all, many real estate investors buy properties, rent them, and hold for the long term. This certainly is where the majority of real estate investors have made their money over the years. Though the real estate market may move up and down, historically, prices have always moved up. For a real estate investor, he or she gains tax benefits and hopefully cash flow as she owns the property. In addition, the principal balance on the loan can be paid down as well over time. And hopefully, by holding onto the investment property long enough, prices will rise.

Our real estate team knows of many investors who buy homes, condos, townhomes, duplexes, etc. There is certainly no right or wrong way to invest in real estate. The key is to have a longer term horizon in the back of your mind. With this sort of timeframe, a real estate investor can surely win in the game of real estate investing.