Investing in real estate is a great way that many investors use to make money. There are also many ways to make money investing in real estate. Some buy buildable lots or plots of land with structures they demolish, making way for building something new that generates a lot more property value. Others buy lots with existing structures and fix them up, again selling them for a much higher price than they bought for.
Others take a longer view and actually invest in real estate with the intention of owning the actual business that goes up on that property, enjoying the preservation of their wealth in terms of property value but also enjoying the profits from the business on that lot.
Real Estate Investor
However, some real estate investors choose lease options for their properties, and for many good reasons. The first of them is simply that an investor who has plans for a property might not be able to execute those plans right away. They might know of potential rezoning that could open up new possibilities for their land, or they might not have the financial resources to do construction and renovation right away. In such cases, offering up lease agreements can generate income off a property until the day comes that things change.
In other cases, a real estate investor might just understand the power of numbers. Rather than run one business of a piece of land, a lot might hold a few stores and also a restaurant. Instead of relying on one business to prove profitable, several tenants might be enough to cover the costs of maintaining a piece of property, meaning that every additional tenant becomes pure profit.
Real estate investors can also make a lot more money off of the residential side of things if they’re open to lease options, because they might turn a home into two or more residences, so they again get those multiple streams of income from a single property.
Buying And Selling
The downside to all this is that the investor has to then deal with property management and landlording, but such responsibilities can often get outsourced to third-party vendors and services.
In some cases, real estate investors might even choose to exercise investing into lease options rather than buying land or buildings. That turns off many, given the control they give up, but it also opens doors to some investment opportunities that can’t be had otherwise. McDonald’s is famously one example, as the corporation owns the land its restaurants sit on, as it holds the power of terminating a lease as a way to keep franchises in line with company standards. Most are still willing to enter this arrangement though given how profitable these restaurants tend to be.
Whether it be through leasing to others or leasing from others and then building something profitable, real estate investors aren’t always outright buying and selling. The devil is always in the details, but due diligence, patience, and persistence can yield the right deals and profits for those willing to do the work. To know more contact us or visit the website at https://3cre.com/commercial-real-estate-dayton-ohio/.