Of all investment offerings, real estate is currently the most stable and one of the most attractive. That has been the case for as long as anyone can remember. The real estate industry generates relatively good profits year after year. Real Estate is the ideal investment option for the aging population, as well as the millennial getting a jump on retirement assets. Here are five real estate opportunities for entrepreneurs in 2020 and beyond.
At the top of the advantages of real estate is the offering of exponential future cash flow and the appreciation of value — over time.
Real estate also offers equity growth through debt reduction. This positive leverage helps investors keep up with inflation and worry about fewer investment risks
Investment experts predict that the real estate industry will continue earning investors higher returns going into 2020. Next year will see most real estate equity firms realize full growth potential. The following five real estate opportunities will also crop up for entrepreneurs to leverage in the coming year
Property mutual funds.
As an entrepreneur, you need an investment option that allows you to limit your level of risk and, at the same time, minimize your involvement in active management. Real estate mutual funds give you that and more.
Taking advantage of this investment method involves real estate companies using stocks and other specified securities to purchase property on behalf of investors. Funds are on the uptake and are expected to take shape in the coming year, mainly due to increased residential and commercial vacancy rates
The risk involved in investing through real estate mutual funds is significantly lower than when you buy and manage property individually. Like most mutual funds, these funds are extremely liquid, so you can always cash in on them any day. Managing your funds in this way is new to the real estate world and exciting
Deploying an investment trust as part of your investment strategy brings investors together. Individuals can combine funds and jointly invest in the trust. The real estate investment trust (REITs) have seen exponential growth in the last couple of years, with real estate futurists predicting that they will become even more profitable going into 2020.
When investors acquire property through a REIT, they become beneficiaries of the investment trust and become eligible for a share of any annual profits that the property makes. The benefits can be generated from either selling or renting out the mutually-owned property.
Going into 2020, investors will have many REIT investment opportunities, including investing in shopping malls, hotels, warehouses, and office buildings. Every real estate equity firm out there must be keen on investing in this under-invested area
- Real estate notes
Someone wants to buy property, say, a home, but doesn’t have the capital. In that case, you step in and provide loan financing for that person, with an agreement that they will be paying you on the loan.
Real estate notes are the documents that authenticate that transaction and guarantee that the borrower will be paying the financer the amount and at the intervals agreed upon by both parties.
Real estate notes have been growing in popularity over the last decade and are promising to keep gaining going into the next decade. These notes can be sold in the real estate market at a profit. The idea here, therefore, is to cash in on the notes when the market suits you
- Real estate-focused companies.
2019 witnessed impressive growth in real estate focused companies. There are now thousands of real estate startups in the world, cumulatively managing hundreds of billions of dollars’ worth of property. Technological advancements such as the growth of AI and machine learning have helped real estate startup companies to grow exponentially within very short durations. You can easily make huge profits by searching for a promising real estate company and investing heavily in it
- Short-term rentals.
Renting out property is one of the best long-term projects any investor can make. Rentals make money consistently and steadily over the years while all along, preserving the initial value of the property, if not raising it.
All you need to do when you eventually decide to sell a rental property after years of use is to remodel or renovate the outdated or damaged areas. Traditionally, landlords believed in renting out their properties to people who were planning to stay in the property for a long time.
The model of long term rentals will always be a viable hedge against inflation — but at present, we see this trend quickly being overtaken by short-term rentals. Cities and locales that welcome a considerable number of visitors around the year see a massive uptick for rental Airbnb markets. People also feel better staying in private rentals with less traffic than a traditional hotel.
Vacation rentals in Florida, for example, are becoming more and more fashionable because tourists prefer to stay in them than to spend tons of money staying in upscale hotels.
If you own property in Florida or any other popular tourist destination, you will make more money in 2020 by renting out your property to short-term visiting tenants than to long-term local tenants
Real estate investment is still a splendid investment offering. Always has been, always will be. And because of its guaranteed stability and profitability, every serious investor must look for ways to leverage this industry and grab every opportunity it presents. Good luck as you consider your options in 2020 and throughout the next decade
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