Investing in property is a great way to increase your wealth and income over a steady amount of time. Investing in property is generally thought to be based on buying and selling residential properties with a margin for profit or owning rental properties, but there are other ways to invest in property!
Alternative real estate investments are a different way to invest in property and procure wealth that is not based on rental properties, real estate investment trusts, or flipping houses. It is not to say that owning rental properties or real estate investment trusts is not a good way to invest your money, but there are other ways to invest in real estate property for those who do not want to go that route.
Alternative real estate Investments can open up doors to different types of real estate partnerships, which are highly lucrative investment methods, without the incredibly high risk that comes with other types of real estate investments.
Alternative property investments can address different social or environmental issues in the area while providing profit for the investor. It is also safe to say that many people who invest in alternative property investments end up investing in themselves long-term.
So what are alternative property investments? How are they different from other types of property investments such as rental properties? What are the best ways to find alternative property investments? What are the key things to look for? All those questions and more will be answered below in this article!
What Are Alternative Property Investments?
The question of the hour is what are alternative property investments. Alternative property investments are different types of properties that an investor can invest in and turn a profit. They are considered alternatives because they are not the usual types of properties that investors will purchase to make money.
There are a wide variety of different alternative real estate investments, many of which are not common. But just because they are uncommon or unconventional, does not mean that they are not great investment opportunities. Alternative types of investments are usually very profitable because they are different from the mainstream.
Being off the beaten path is not what makes them profitable, but it allows an investor to select properties and grow their investments. Many people assume that the most common types of real estate investment properties are the most profitable, but in actuality, the most commonly known real estate investments are not always the most profitable.
Many times, investments that are not on the public or general radar of most people give investors a better profit because there is less blood in the water. This means that there is less competition in the market, so an investor can quickly gather up properties and turn a large profit rather quickly. This also means that the saturation of properties to invest in is high in any given area. While this is not true for every case, it is frequently true for many types of properties the investors are looking to purchase.
Now that we have clarified what an alternative investment property is, let’s explore some of the different types of alternative property investments and talk about which types of property are the options to invest in. The following list has some of the investment options:
- Raw Land
- Co-working spaces
- Mobile home parks
- Manufactured homes
- Real estate syndications
- And more!
The first alternative property investment opportunity we will talk about is co-working spaces. Co-working spaces have become incredibly popular in the past 10 years or so, and have become a frequent staple in large cities with lots of corporate and freelance workers.
Co-working spaces originated in San Francisco around 2005 and quickly spread out into other large and costly cities like New York and London. These bases are a great way for everyone involved to get a benefit. People who work in the co-working spaces and are members of the co-working space community can share office costs with others, regardless of what the worker or working group may look like.
The next alternative property investment we will look at is manufactured homes. Many people try to avoid manufactured homes as investments because they are not as glorified as other options. Manufactured homes are also known as mobile homes, and can be attached permanently to the plot of land it sits on or can sit in a mobile home park.
When a person buys a mobile home, they’re not buying the piece of land in which the mobile home rests, but rather the home itself. Leasing out the mobile home is a great way to turn a profit and increase her income monthly.
The next investment opportunity is land. Raw land is often avoided by many investors because many think that it takes a lot of work to turn it into something profitable. This however is not completely true.
Owning raw land is much easier than residential real estate because there is no upkeep if there is no residential building. Because the land itself is raw, you will only need to pay property tax and there is nothing to keep up with or maintain about the land.
What To Look For When Investing In Alternative Property
When looking at properties to invest in that are alternative to the traditional ones, you want to make sure that there is a viable opportunity for profit. Anything is an investment if you work with it the right way, but not everything is a good investment.
Even though the investment may be an alternative type of investment, there are still sure to be competitors in the market. Additionally, there can be legal aspects and limitations on many types of real estate investments.
Because of this, you want to make sure that you are looking for legitimate investment opportunities. If you are just getting into the world of real estate investment or alternative real estate investment, then you will want to start with something that is a surefire profit. Surefire profit includes things like mobile home parks, where if the demographic and area is fitting, a person can make a lot of money.
Surefire prophets are going to look different in different areas, so maybe one investment method that works in rural Kentucky may not work in downtown Los Angeles. You want to look for opportunities off the beaten path that are showing a significant profit for those who are already involved in the market.
One of the best ways to figure out how to work with the area you are investing in is to look at the needs and wants of the people living in the area. Do a quick scope of the community or town you find yourself in and explore the options that are viable for that area. Not only should they be viable for the people in the area, but they should be viable for you as well.
Look for investment opportunities that can last a long time. Whether it is an investment that can make you money all year round, monthly, or seasonally, it is highly suggested that you look for something long-term. If you are investing in an area with lots of tourists in the summer, then you should conceive the purpose of your investment property to be seasonally based, because you will make most of your money during the tourist season.
Wanting To Make An Alternative Property Investment? Here’s How To Hire The Best Real Estate Agent For Your Investment Needs
You should also design your investment property purchasing with professional help. Enlisting the help of a real estate agent is super important when looking for alternative property investment opportunities.
Real estate agents can help you see possibilities beyond your normal scope of vision and help save you money and time. Your real estate agent can also tell you about different types of real estate trends, and investment opportunities beyond the scope of what you were looking at, as well as give you insider information about new, upcoming alternative real estate investment opportunities.
The keyword here is that you have a good real estate agent. A good real estate agent will understand what you are looking for and what you need and work with you to do their best to find you a property that fits the bill. A bad real estate agent is only going to try and make money for themselves.
A real estate agent can help you find alternative property investments that are easier for you to buy into with your current level of investment and teach you how to move up in the alternative property investment world. While your real estate agent is not your mentor, they definitely should be a guiding light in your journey to figuring out alternative investment properties.
Working with a premier real estate agency is a great way to get started on your alternate property investment journey! Reach out today to be put in touch with a real estate agent who can help guide you through the alternative property investment process.