It is a well-known fact that real estate is one of the most effective paths to wealth in America. Even outside of competitive markets like Los Angeles, California offers many opportunities for real estate investors to pursue. This is true regardless of what avenue they wish to take, such as developer, investor or realtor. In fact, some people have successfully pursued a combination of all three.
A CNN story of one California realtor covers some of the many paths people can try when looking into real estate opportunities:
- Finding the deal: Some people have a nose for a good deal in real estate, even when they lack the money to invest. Professionals can find investors these deals and skim off the top.
- Getting multiple investors: Instead of taking out a loan, many real estate professionals get multiple investors to pool their resources together. They then use this money to develop or buy properties.
- Smallscale partnering: If two or more people share the same goal and vision but bring complementing assets to the table, they can partner to develop properties. For instance, a party of three could be a realtor, contractor and investor.
- Using loans: Professionals who prefer greater financial independence and have good credit to boot might benefit from this arrangement.
The story as told by CNN shared that not all of these approaches provided long-term benefits for the investor. It nonetheless offered lessons for him to fine-tune his next approach and execute the plan.
One option not covered above is becoming a landlord. Forbes reports that for 2019, some cities in California saw monthly rent prices as high as $2,013 per month. An undersupply of housing is the main reason for this. Developers are unable to keep up with market demands as jobs bring more people in. This creates a great investment opportunity for the right professional with a competent team and sufficient capital.