Top 3 Real Estate Investment Options by Gene Bernshtam
Whenever Gene Bernshtam gets asked about the best way to earn from real estate, his quick reply would always be in the form of a question: What is your financial goal? There is not one specific answer to how best to earn from a real estate investment because each investor has unique risk profiles and financial goals, Gene Bernshtam adds. But for the sake of clarity, Gene shares below the top three common profit options from one’s real estate investment:
1. Market appreciation
This is probably the riskiest route to take, according to Gene Bernshtam, as you will have to wait for the value of the property to appreciate before selling it for profit. In today’s real estate jargon, this is known as “flipping.” Depending on the condition of the property, you may have to make improvements on the structure as well as the surrounding outdoor space in order to increase its value. But even with the improvements, you may have to wait until the property’s value appreciates, which is basically dependent on several factors in relation to the real estate market, says Gene Bernshtam.
2. Rental property
For those looking to earn regular income from their property, going the rental route is an ideal option. But, warns Gene Bernshtam, there are several key factors to be considered here as well—location, tenants, property operations, and maintenance, among others. You will need the help of a real estate investment advisor and a property manager in order to make this investment work.
3. Real Estate Investment Group
If rentals are still your first choice for earning from your investment, but you do not wish to be burdened by the responsibility of managing the property, then your best option is to join a real estate investment group. Basically, Gene Bernshtam says, you will invest in a unit or multiple units in a building, upon which all the tenant acquisitions, unit maintenance, and such will be handled by the company who built—and are now renting out—the structure. All investors will become part of the company’s real estate investment group.