Maximizing Your Returns: Exploring Diverse Real Estate Investment Strategies

Presented by Astra Properties LLC
Maximizing Your Returns: Exploring Diverse Real Estate Investment Strategies
By Nicholas Burrus · 01/10/24
Thanks for tuning in to todays! Read time roughly 5 mins.

Happy Wednesday ⛅️ 

Welcome back and thanks for tuning in.

This industry has many facets - there are different ways to put your money and make a stable income. 

It's just a matter of figuring out where to invest your money and how much risk you're willing to take to reap the rewards.

And that's what we're here to talk about -

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Buckle up!

Where to Put Your Money in Real Estate 🙌 

That doesn’t involve actually buying a property?

A good investment plan and knowing the ins and outs of the business is the best way to ensure a high chance of success or ROI. 

This goes especially for high-risk investments - the risks should be balanced out with an equally high reward.

If you're ready to start investing in real estate without actually buying or managing (in some of these cases), here are opportunities with a high probability of success:

Real Estate Investment Groups (REIGs)

Real Estate Investment Groups, or REIGs, are similar to mutual funds invested in income properties.

A company buys or builds a condominium or apartment complex and lets investors buy the spaces to join the company. 

You can buy single or multiple units, and the company will manage everything else, including:

  • Maintenance

  • Repairs

  • Marketing

  • Looking for renters

It's a pretty hands-off way of investing in real estate, and the income is regular and stable as long as there's no vacancy. If the vacancy rate isn't too high, you can earn some income even if your unit is empty.

The only potential downsides are dealing with managers and the fees of being part of the company. 

Wholesaling

Getting a property under contract and assigning it to another buyer.

Easier said than done right?

It’s actually not as scary as people make it sound and in the future we plan to make a step by step guide on how to complete your first wholesale deal 😄 

It’s the most low risk, high reward system.

Let us know below is you’d be interested in the guide!

Real Estate Investment Trusts (REITs)

REITs are a trust or corporation that uses investors' money to buy and manage income properties.

REITs are essentially dividend-paying stocks.

Like any other stock, REITs can be bought and sold on exchanges. 

REITs can be anything from rental to non-residential spaces like office buildings and mall stores. 

They are highly liquid, and these can be exchanged or traded, and you don't need a real estate agent or a title transfer to earn money off your investments. 

There are 3 types of Real Estate Investment Trusts (REITs)

Equity REITs: A trust buy and manage properties like apartments, offices, or shopping centers. When these properties make money, you, as a member of the club, get a share of that profit.

Mortgage REITs: A trust lend money to real estate owners or buy existing mortgages. They make money through the interest on these loans, and you, as an investor, get a piece of that interest.

Hybrid REITs: These are a mix of equity REITs. A trust own properties and give out loans. It's like being a property owner and a loan officer at the same time. As a member, you benefit from both rental income and interest from loans.

Real Estate Crowdfunding 🤑 

These are investment opportunities made online. The deal could be commercial or residential real estate.

When investing online, you don't need much capital, and you can invest in single or multiple projects to diversify your portfolio. 

The capital isn't as big as buying a property, and other investors will pool funds to finance new or current real estate projects.

As for the downsides, there are management fees to take care of and lock-up periods of illiquidity.

Is it a Good Idea to Buy a Property on a Busy Street? 😲 

Location is everything in real estate!

Location is one of the most important factors to consider when buying a property.

And this goes whether you plan to live in it, sell it, or rent it out. 

A property on a busy street has everything that makes it a great investment, but just like anything in real estate investing, there are risks

Do your due diligence and weigh the pros and cons of owning a property on a main road. Here are some points to consider:

What are the advantages of buying a property on a busy street? 

The hustle and bustle 💥

Regardless if the property is a house in the suburbs or a rental space at the heart of an urban jungle, the main streets are full of activities.

It's where the action is!

Cars are passing by every second, and there are people everywhere. If the space is for business, it will definitely attract renters.

Accessible to local amenities and attractions

Centrally located properties are often near bus stops, train stations, supermarkets, parks, schools, clinics, and local amenities.

Most shops and other attractions are within short walking distance. 

If the property is near stadiums or tourist spots, you'll earn serious $$$ by renting out a portion or the entire property. 

Business opportunities

Busy streets are the best places to build shops or rent living spaces alike because of the sheer amount of foot traffic.

Spaces in business districts are great sources of stable income, and these properties only appreciate over time!

For renters, most spots are within short walking distances. You can also travel via public transport.

And because main roads are always full of activities, the streets are often well-lit, and in urban areas, stores stay open even at late hours. 

Safety and security

Compared to quiet streets, busy main roads are well-lit and have a stronger police presence. That means:

  • Kids can walk to school safely

  • Walking alone at night is much safer

  • The direct routes between places mean you don't need to buy a car and worry about safety or parking

Maintenance

Centrally located areas are prioritized for maintenance - filling potholes, getting plowed during a snowstorm, repairing a streetlight, trimming trees, etc., to ensure pedestrian safety. 

That explains why buildings and houses on main roads are so well-maintained!

Great prices

Compared to a house in the suburbs, houses on main roads are cheaper because most homeowners have families and prefer somewhere quiet and secluded. 

Many of these properties are offered at a 5% to 10% discount, so there are plenty of hard-to-resist deals on properties sitting on main roads to choose from.

What are the disadvantages of buying a property on a busy street? 

One of the issues of living on a busy street is the noise. The place is teeming with cars and people; most places are under construction, so city noises are common in busy areas.

Good thing the noise can be blocked with well-insulated windows and doors. 

Air quality is also an issue when you live on a busy street.

You need a good air filtration system to purify and refresh indoor air. Keeping doors and windows closed all the time also helps prevent dust from getting out of control.

The lack of privacy and available parking are other issues that come with living in central locations. But these can be solved with heavy curtains and taking buses and trains to get from point A to B. 

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💫 What Else is Poppin? 💫 

Apple could lose its "most valuable company" status after a staggering stock slump

To the tune of $164 billion 😲 

For years, Apple Inc. has the world's most valuable stock by market value. But the iPhone maker could soon lose this status after the company's stocks plunged to a staggering $164 billion.

2019 was a rocky start for the Cupertino, California-based company, and by 2022, stock prices fell sharply after getting hit by two rating downgrades.

China's impact on iPhone demand and market pressure also led to a shrinking stock value, giving second lead Microsoft Corp. a real chance to snatch up Apple's spot for less than $100 billion.

If there is one company that benefitted from the AI trade, it's Microsoft.

The software maker has invested a cool $13 billion into OpenAI. Microsoft has a 49% stake in ChatGPT's parent company.

Now that’s a winning move

Catch the latest episode of the AstraCAST podcast! 📱 

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You can catch me and Marcos on YouTube, and Spotify! Catch up with us as we bring on guests from all parts of the industry covering everything from real estate, personal development, to growing a business through acquisitions, rentals, and renovations.

Don’t be shy, check us out here!

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