You can choose from multiple ways to invest in real estate and can pursue multiple sources of return. You might go for buy and hold, lease options, master leases, fix and sell, create value and hold, foreclosures, REOs, contract assignments, condo conversions, wraparounds, or some combination of any or all. And within each of these possibilities you might profit from more than 20 sources of financial returns such as inflation, appreciation, leverage, cash flows, amortization, subdivision of rights, subdivision of the physical property, conversion, smarter management, and savvy marketing. Property investing offers a cornucopia of diverse opportunities.

But these aforementioned possibilities do not exhaust your potential. Although less popularly recognized, each of the following types of investing can yield extraordinary returns—when pursued with research, wise calculation of risks and rewards, and large doses of due diligence.

  • Out-of-area investing
  • Commercial properties (office, retail)
  • Triple net leased properties
  • Self-storage
  • Mobile home parks
  • Zoning changes
  • Property tax liens or tax deeds
  • Discounted paper

Before you move forward with any of these investments, educate yourself about the local market, the specific opportunity, and the realistic numbers that are necessary to make a proposition attractive. Read more specialized how-to advice. Talk with unbiased and disinterested players who have succeeded—never rely exclusively on the sales ...

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