Tyler Tysdal is a real estate expert who has spent his career in this industry as both an investor and as an investment manager, working with private equity real estate funds. This is why Tyler is the best person to speak to about the ways and means that one can invest in real estate and most importantly, how they can make reruns on their investments. Real estate isn’t like any other type of investment, it is far more secure, it is tangible and ultimately it can more often than not be much more profitable than other markets. Let’s take a look at how this type of investment can be lucrative.
Private Equity Real Estate
Private equity funds is nothing more than a vehicle which pools together funds for a group investment and it is something which we usually associate with hedge funds or investment groups. Back in the early 90s there was a slump in the market and groups of wealthy individuals, and even some families, realized the buying power that they would be able to achieve if they pooled their resources. These funds still exists today and they are a great way f investing in real estate in order to make a profit. The minimum investment for these funds is usually around $250,000 and there is a waiting period of around 6 years before you see returns. Following the wait however investors can see returns of between 6-8% on their investment.
For some people they rent out their properties whilst they wait for the market to increase, in the case of others they are looking at long term rental which will pay off the value of the property, leaving the investor with an expensive asset at the end. This is probably the most common form of real estate investment and those who are doing it can see regular monthly income from rent, as well a having the luxury of selling should the market boom. One benefit here is that rental prices rarely fall in line with property prices which can help owners of a negative equity property still bring in revenue.
Flipping property is very much an art and those who do it can make sizable profits each year. The art of flipping is very simple, buy cheap, sell for a small profit a short while later. Usually these properties will be picked up at an auction, the buyer will then pump some money into the property to increase the standard of it and then they will look to sell it as soon as they can, ensuring a small profit on each property that they flip. These small gains all add when you consider the number of properties that the investor will flip per year. The reason as to why this is an art is because to do it you need to perfectly understand the market, as well as knowing how to maximize the value of a property in the shortest time possible.