If you are a real estate investor with vision, you have already identified some cities or regions that will recover strongly as the economy continues to rebound.
The question is, how can you invest money now and not lose it while you are waiting for things to improve? Here are four investing options that can generate income from properties while they rise in value.
- Buy a small business that’s located on a piece of land that is increasing in value. If you keep your eyes open, you will find many to choose from. One could be a deli that’s located next to a mall that is expanding, or a grocery in an urban area that’s improving. The best strategy is to select a business that’s profitable enough to cover its expenses until you sell it.
- Buy vacant land and set up a parking lot. Parking facilities generate more income per square foot than you might realize. In fact, it is not unreasonable to expect to take in $6,500 daily from a lot that is located in an urban setting. To learn more, subscribe to Parking Today Magazine.
- Buy vacant stores in good locations and lease them to pop-up stores and other short-term tenants. Pop-stores open their doors in vacant stores during peak selling months – then close down and disappear until the following year. You’ve seen them in malls and by the road. They are often stores that sell goods tied to holidays such as Halloween or Christmas. One caveat? Before buying a vacant store in a retail complex, be sure to investigate rules that the mall management may have in place to prevent short-term tenancy.
- Buy rural or suburban land where you can build and operate a self-storage facility. We’ve written about this strategy before on this blog, because it can work so well. No doubt about it, self-storage facilities are great “placeholder” businesses that can generate income from land until you can sell it for a profit. They are economical cheap to erect, they don’t require much heating or air conditioning – and they generate good profit from every square foot of land that they occupy.
Five Real Estate Investment Deal-Breakers
Investigate Hospitals in Areas where You’ll Invest
Buy Residential Properties in Communities with Great Schools
Check Out What Other Developers Are Planning Before You Invest in an Area
Get your Real Estate Salesperson license
Before Buying Properties Check Out Local Employment Trends