Best types of Real Estate Investments in San Antonio

Apartment rentals REITs, REITs, prime real estate Land and crowdfunding platforms are all examples of real estate investments.

The information on investing that is provided on this page is for solely educational purposes. Our website doesn’t offer any brokerage or advisory services and it does not advise or counsel investors to purchase or sell specific stock, securite prime real estate or any other investment options.

There are many types of real estate investments but most fall into two groups: Physical estate investments like land, commercial and residential properties, and various other investment options that do not require physical properties, like REITs and crowdfunding platforms.

The traditional investment in physical real property may provide the highest return, but it can also require more money upfront , and can incur significant ongoing costs. The crowdfunding and REIT platforms have lower barriers to entry, meaning you can invest in multiple types of real estate for far cheaper than it costs to invest in a traditional property. These alternative real estate investments have the additional benefit of not having to leave your house or put on pants to start investing.

If you’re considering investing in real estate the following five types to consider:

1. REITs

The public market for publicly traded REITs or real estate investment trusts, are businesses who own commercial real estate (think offices, hotels along with malls). It is possible to invest in shares of these companies through a stock exchange. By investing in REITs you’re investing in property these companies own and are not subject to the risks that come with owning real estate directly.

REITs have to pay at the minimum of 90% of their dividends that are tax deductible to shareholders each year. This means investors can receive lucrative dividends and also benefit from diversifying their portfolios through real estate. REITs traded on the public market also offer more liquidity than other property investments. In the event that you need cash, you are able to sell your shares via the exchange. If you want to invest in REITs traded on the public market, you can do so via an broker account.

2. Platforms for crowdfunding

Real estate crowdfunding platforms give investors access to real estate investments that may bring high returns but also carry significant risk. Some crowdfunding platforms are open only to accredited investors identified as individuals who have assets, or joint net worth of a spouse, of more than $1 million — excluding the worth of their houseor an annual revenue for the last two years, that exceeds $200,000 ($300,000 with a spouse).

“Keep in mind, many crowdfunding platforms are relatively new with a short track record, and have yet to experience an economic downturn.”

Some, like Fundrise or RealtyMogul, offer investors who don’t meet those minimums — also known as unaccredited investors access to investment opportunities they would not otherwise be capable of investing in. These investments are typically in the form of non-traded REITs which are REITs that don’t operate on the Stock Exchange. Since they aren’t publicly traded REITs that aren’t traded are extremely in liquid. This means that your funds will be invested for at least several years and you won’t be able to withdraw the money from the investment if you want to use it. Remember that many crowdfunding platforms have only a brief experience, and are still to overcome the economic recession.

3. Residential real estate

Residential real estate can be found virtually everywhere people live or reside, such as single family condominiums, homes, and vacation homes. Residential real estate investors make money by collecting rent (or regular payments for short-term rentals) from tenants of their property, through the appreciated value their property is worth between the time they buy it and when they sell it, or both.

The investment in residential real estate can take many varieties. It can be as simple as renting out spare rooms or as complex as purchasing and flipping the house to make an income.

4. Commercial real estate

Commercial real estate is a space that is leased or rent by a business. A office building rented by a single business or gas station an outlet mall that houses several unique businesses and leased restaurants are just a few an example of commercial estate. Except for the property itself in which case each business has to pay rent to the owner of the property.

Real estate for retail and industrial use may fall under the umbrella of commercial. Industrial real estate usually refers to buildings where goods are manufactured or stored rather than sold. Examples include warehouses and factories. Retail space is where the customer can purchase a product or service like the clothing store. Commercial properties typically have longer leases , and they can charge higher rents than residential properties, which could lead to a steady and higher in the long run for the owner. However, they also may require higher down-payments and management expenses.

5. Raw land

If you construct it, can they move in? Investors usually buy land to develop either commercial or residential development.

However, buying land to develop requires a lot of market research, particularly in the event that you are planning to develop the land yourself. This kind of investment is best for those with an enormous amount of money to invest and an in-depth expertise in all things related to real estate related — building codes, zoning regulations, flood plains as well as an understanding of local commercial and residential rental market.

Which real estate investment is most suitable on San Antonio?

If you’re thinking about purchasing traditional property -including commercial or residential properties, doing your due diligence doesn’t just mean coming up with your down payment. Knowing your local market is essential. If there’s not a lot of demand for commercial or residential spaces in your area, or property values start declining, your investment could quickly become a burden.

If you’d rather be more hands-off with your investments, REITs as well as crowdfunding platforms are great ways to add real estate your portfolio with no physical property.

Some brokerages also offer REITs that are publicly traded and mutual funds.

Real Estate