Different Kinds of Real Estate Investors
Real estate investors come in many shapes and sizes. Some invest thousands of dollars, some invest tens of thousands, and others may invest hundreds of thousands or more. There are also investors who use their skills to make a modest income from flipping houses or renting out an apartment. If you’ve been looking to get in the real estate game but aren’t exactly sure where to start, this article is for you.
What are the different types?
When most people think of real estate investors, they think of commercial investors. Commercial investors are those who use their funds to build and buy large buildings such as office buildings, retail malls, or apartment complexes. In doing so, they rent these out. These people tend to have a lot of money and make the bulk of their income from interest, property management, and rent. Dive in https://www.atticushomebuyers.com/we-buy-houses-madison/.
Residential investors buy single family homes or small apartment buildings. They often rehab the home’s interior or exterior to improve its appearance. Some may also do minor repairs here and there as needed in order to make as much money off the property as possible. Due to the fact that these homes are easier to maintain, they tend to generate a good income for those who own them.
Hybrid investors fall in between the two categories listed above. These are people who may invest in both residential and commercial properties and a combination of the two. Some choose to flip houses while making money off rental property they own at the same time.
Turn-key investors are those who don’t get their hands dirty at all, but rather focus on buying properties that have already been rehabbed and are ready to be rented out instantly for maximum return on investment. All they have to do is manage their properties, and they make a nice income off their investments.
Fixer upper investors
Just like it sounds, fixer upper investors buy properties in need of repairs or renovations. For most people, they’d think this isn’t the smartest idea because they’ll have to spend more money on the property than they’d like and wait for a return on their investment. However, these types of investments tend to pay off better because there is more profit to be made once the house is finished and ready to be rented out or sold.