If you haven’t yet taken our Investor Quiz, take a moment to do so now. The quiz will give you insight into the best kind of real estate investment for you according to a variety of factors. Once you complete the quiz and get your results, come back here to see even more insights into what your results mean, and to learn more about the property features that might best suit you.
1. Single-Family Rental Property Investor
Single-family rental property investors normally have $20,000-$50,000 dollars to invest and are looking for safe investments in good real estate markets where appreciate, population growth and the job market are strong. This type of investor is risk-averse; instead preferring the safety of proven markets and highly predictable rates of return. They are content with slow and steady returns on property types they completely understand; the single-family home rental.
What Kinds of Investments are Good for Single-Family Property Investors?
Single-Family homes are the number one type of investment that will suit the needs and desires of this kind of investor. But specifically, the single-family home would have to meet additional criteria to make it an attractive investment worth pursuing. The best kind would be an A or B class property. Generally, this means that the property would require little to no repair or renovation before renting. The property would be in a desirable neighborhood with little crime, high ownership/occupancy ratios, good schools, and an abundance of amenities that would attract long-term, quality tenants, such as sidewalks, parks, boutique shopping and an abundance of restaurants and cafes.
2. Private Money Lending Investor
Private money lending investors typically have from a minimum of $50,000 to invest, upwards of several million dollars. They’re looking for attractive interest, highly secure land development opportunities, or multi-family or commercial flips. Investors in this category are seeking a good annual return, and expect 100% initial investment return after just a few years. Often, private money lending investors seek similar investment opportunities when the previous one completed. In other words, the private money lending investor is a “rinse and repeat” type of investor.
What Kinds of Properties are Good for Private Money Lending Investors?
Any large-scale land or property development project with a high potential for gains might attract this type of investor. Examples include vacation resorts, convention centers, multi-use buildings, apartment complexes, and commercial high-rises. Ideal, the developer would have a proven track record, a good reputation in the industry, and a wide network of resources. Financially, the developer would need to demonstrate a history of fiscal responsibility and business acumen. Private money lending investors aren’t limited to investing in local properties. The world is their market, which makes this an exciting type of investment portfolio. A high degree of risk is often assumed, but for this type of investment, the money loaned is on secured terms, which mitigates risk.
3. Lifestyle & Vacation Rental Property Investor
Lifestyle and vacation rental property investors understand that their return on life can be multi-generational. They may have asked themselves, “What if I had the opportunity to invest in 1950s Hawaii and had been ready to act?” These types of investors are actively seeking similar scenarios now that they are currently ready to act. They have a minimum of $150,000 prepared to invest. They are looking for properties that they and their families can use to vacation, as well as get cash flow when not being personally used.
What Kinds of Properties are Appropriate for Lifestyle & Vacation Rental Property Investors?
This type of investor is looking for vacation rentals with something extra special. First, the property must be in a vacation destination. While this investor would want to view the property personally before investing, the physical address doesn’t need to be near the investor’s residence. Properties in other countries would also be in the consideration set. The property should be easily accessible by conventional transportation methods. The native spoken language should be English, or a high percentage of native speakers should speak and understand English. The property should be low to moderate risk as far as ROI. There should be ample opportunity to find suitable tenants during times when the investor is not personally enjoying the vacation property.
At American Real Estate Investments, we offer a wide selection of properties for every type of investor. Whether you’re looking for single-family rental homes, large-scale development investments or vacation properties, we’ve got something that might appeal to your style of real estate investing. Fill out our online contact form or give us a call to learn more about partnering with American Real Estate Investments.