Real estate offers an abundance of exciting opportunities for investors. Over the long-term, when done right, real estate investments can create significant wealth and provide cash flow and provide a pathway for a secure retirement. In addition, when you are investing in real estate, focusing on personal interests and goals can often create investments that offer more than just returns; they can further enhance your personal life or career path. Finally, once you have succeeded in one niche of real estate investing, diversification into other sectors should be on your horizon, as diversity offers security against downturns in any market sector.
Because of the wide variety of potential investment properties, talking to someone trusted and experienced is helpful. Real estate requires a great deal of education, and a close family member or friend with investment experience willing to offer advice can greatly benefit beginners. Otherwise, reach out to an expert investor about your interests and future goals to help you start your real estate investment journey off on the right foot. So read on as we explore three ways you can invest in Chicago real estate.
Residential
Residental rental income properties offer various sectors to invest in Chicago real estate. Single-family homes offer multiple options for investors who can turn a fast profit with a fix and flip or hold the property in their portfolio as long-term rental and build holdings using the BRRRR method. In addition, investors can find short-term vacation rentals near vacation destinations or where there is a need for business-related housing. At the same time, mobile homes offer opportunities from a single unit to an entire mobile home park or multi-family housing from a single duplex to vast apartment complexes. There are opportunities for every level of investor, from beginners to those adding another holding to their real estate empire. However, residential real estate management can become limiting as your holdings grow, and dealing with tenants or maintenance issues eats away precious business hours. When managing your real estate holdings is holding you back from investing, hiring a highly reliable and caring property management team like the full-service team of pros at PIP Realty Group.
Commercial
Commercial properties offer a variety of ways to invest in Chicago real estate. For example, office space, retail, or restaurant properties are another way to grow your investment portfolio. Research into plans for growth can provide you with the information you need to buy in the right location at the right time. While sites in larger city centers are always lucrative, do not make the mistake of overlooking the growing trend toward shops and services for a walkable-based lifestyle in residential areas. As with every real estate opportunity, everything boils down to the numbers. There are formulas investors must understand how to compute and utilize to succeed. When it comes to the CAP rate or capitalization rate provides investors with a way to make a realistic price comparison with other properties and know how much return you can potentially realize on each investment. Then you must assess the amount of risk you are willing to take; with higher risk come more significant rewards, so weigh all factors carefully. Whether you are a seasoned investor or a beginner, you can benefit from the expert guidance of professional investors like those at PIP Realty Group who are devoted to staying current on market trends, city planning for the future, and have their fingers on the pulse of Chicago real estate.
Land
Land is a relatively low-risk way to invest in Chicago real estate and offers opportunities for every budget, even small ones, because of the variety of available property. Investors can hold raw land for long-term investment or develop their land for residential, commercial, or industrial uses. And while it may not typically come to mind as an income producer, undeveloped land can create cash flow. For example, land can be used to create a campground, offer parking spaces, or provide more extended-term storage for larger vehicles or temporary vendors, such as fireworks or pumpkin vendors. But, again, it is essential to have the right team on your side, like the professional investors at PIP Realty Group who understand land valuation and investments.
The best way to invest in Chicago real estate is with the guidance of the professional investors at PIP Realty Group, who are ready to help you follow your investment strategy. From locating the right investment property for your budget to rehabilitating and managing your investments, at PIP Realty Group, our passion is helping you reach your goals while saving you time and money. At PIP Realty Group, our success is your success; we make it easy for you to invest in Chicago real estate. And don’t forget to ask about the current inventory here at PIP Realty Group; we have the best investment properties available now in Chicago. Contact PIP Realty Group at 773.233.2301.