Srssly though, I don't know anything about real estate investing, but why not use your cash to partner up and start new businesses?
Nothing wrong with that.
New business = possibility for failure, time commitment, and stress.
Real estate - done right - opens up a way for you to put virtually (depending on your income - it's all relative) down while having an asset that will most likely depending on your market only go up in value and, again if done right, pay for itself and over time as you pay off your mortgage continue to earn you more and more money each month.
Real investing isn't buying million dollar homes in Beverly Hills and flipping them. That's something, as shown by the crash, that only lasts for awhile. Just like the berries.
...Good real estate investors usually invest the same % of their worth back into real estate each and every year. Good times or not. When people lose their homes they turn to renting. Rentals are what anyone with half a mind should invest in if they're interested in real estate.
Under four units, at least here (no idea about in the states), you can get home interest rates instead of commercial like you would for over five units. Buy in the heart of the city in places with low vacancy rates and you really can't go wrong.
Most times, with good credit, you don't need a large percent now. Canada just passed a bullshit law that you NEED to put 20% down on any rental property.
But if you can get the rental property appraised low (by asking for an appraisal on the current cash flow of the property - only do this if the current rents are low) even though you may buy for more you can then put some more money into it, get another appraisal done on the worth of the building in and of itself (market value), and get a loan from another bank for that amount you can pay off your previous mortgage (loan) for the lesser amount, cover your (in my case) 20% down, and pay for the repairs.
...Tried to put that as simply as possible. If anyone wants me to actually state the same things in market terms I'll be more then happy to.
Your cutting into how profitable the units, and the building, is per month due to getting a higher loan amount on it. But with the improvements raising rent is usually no problem and as long as you bought the property so that it more than paid for all necessary expenses monthly you'll still be in the black no problem.
...Just like in general marketing you need to show perceived value to the banks your working with and the tenants you have alike.
Depending on what area you're in, especially if it's a large one, real estate investing can seem dangerous. But what people fail to realize, unless your in Detroit, is when people default on their homes and when market rates fall it's all just on paper and people are still mostly living in the general area.
Thus people turn to rentals. Not new, fancy buildings though.
It's about offering your company/properties as a brand. A trusted brand that delivers value.
There's a reason everyone isn't into real estate. Just like there's a reason everyone isn't online, or into stocks. It's because it isn't easy and it does take years of experience and watching to really understand the market, areas, and times that you're in.
...But it can make you solid, sustainable income. And that's, in my opinion, a great counterweight to the ups and downs online.
