Summary: Real estate investing is a great way to put your money to work and grow your wealth! The thing is, there are lots of different strategies to choose from – it can be hard to decide! So, let’s ask the 5 questions that can point you towards the right investment strategy for you!
Love the idea of real estate investing, but notttt sure where to start?
You are in exactly the right place! 👌
See, there are lots of different ways to invest in real estate, and it does matter which strategy you choose. Not every single type of investment is a good fit for every person. It all depends on what YOU are looking for – based on your unique lifestyle, goals, and needs.
The cool thing about real estate investing is that there are plenty of options to choose from. The tricky part about real estate investing is, well…there may be too many options to choose from. 🤣
Thaaaat’s where we come in.
Today we’re sharing the 5 criteria to look at when deciding what type of real estate investing is right for you. Just doing what everyone else is doing won’t pay off if it doesn’t fit your personal needs.
BUT when you find that perfect-match investment strategy, your entire life and future will be changed for the better.
So, whether you’re looking for hands-off passive income generation (like our fave jam, apartment syndication) or you want to get your hands dirty and learn all the things – we’re here to help point you in the right direction.
By asking simple questions, you can get to know what type of real estate investing will hit that sweet spot of meeting your goals, while fitting seamlessly into your lifestyle.
Let’s dive into the 5 questions you can use to determine the right real estate investment strategy for you!
- #1: What type of returns are you after?
- #2: How much risk are you looking to take on?
- #3: What’s your preferred level of involvement?
- #4: How do you feel about tax benefits?
- #5: How much control do you want?
1️⃣ What type of returns are you after?
This first question is allll about the money – which is probably the main reason you’re looking into real estate investing.
You’re looking for some sort of return on your investment, right?
The thing is, narrowing down the percentage of returns that will make your investment worthwhile is important. Based on your financial goals, some real estate investment strategies will offer the right amount of return to hit the mark, while others may go over or fall short.
Here’s what we mean…
When it comes to real estate investing, some strategies offer lower returns, at about 5-7%. These types of returns are comparable to things like stock market investing. On the other hand, some real estate investing strategies can offer much higher numbers, at about 200%.
So you see, there can be a very big difference in the possible returns of each real estate investment.
Now, looking at those numbers, it might seem obvious to go for the highest possible return option, right?
Not necessarily.
Finding the right real estate investment strategy for you isn’t just about choosing the highest return. That’s why we don’t just have one question listed here, today. 😉😉
Instead, we’re looking for balance between several different factors. The next few questions will help put your return goals into perspective and narrow down the types of real estate investing that will fit your needs.
2️⃣ How much risk are you looking to take on?
No matter what type of investment you choose, there’s going to be some level of risk.
That’s just the way the red velvet cookie crumbles, you know?
The choice really comes down to the type of risk you take on, and how great the return is on the other side of it. In the beginning of your investment journey, it’s easy to overestimate returns and underestimate the risks.
That’s because EVERYONE wants to believe in the magic jackpot investments that will make them rich overnight.
We get it…that would be awesome.
Pair that beautiful daydream with the fact that some investment deals actually promise majorly disproportionate returns. They draw people in with BIG income possibilities (like the 200% we mentioned earlier), but fail to highlight the BIG possible losses.
The saddest part is that in all the promises and misleading information, investors often miss our favorite real estate investing option – multifamily apartment syndication.
We’re talking 100% investment returns after 5 years, with minimal risk from a hard asset class. 😍
Yes…apartment syndication (with the right team and due diligence) is actually as good as it sounds. The bummer is that new investors would rather follow social media influencer advice, trendy investment deals, and get rich quick schemes.
But you’re a Kitti Sister insider now, so you don’t have to fall victim to fleeting, risky, disappointing deals that fall short of your goals! 👏
Let’s keep answering the big questions about real estate investing, and see if apartment syndication matches more of your personal criteria.
3️⃣ What’s your preferred level of involvement?
Based on your lifestyle and how you like to live, work, play, etc, how much time and energy are you willing to put into real estate investing?
If you’re interested in owning and managing your own rental properties, then you may be looking to be an active investor. That’s great if you’re into that sort of thing, and have a flexible, open schedule. Just keep in mind, there’s a LOT to learn and do behind the scenes of how the money gets made in real estate investing.
On the other end of the spectrum, maybe you’re more into making passive income while living your life however you want. In that case, it really doesn’t get better than apartment syndication.
As long as you team up with the right syndication team, your level of involvement would be very low with apartment syndication. In other words, no hammers, paint brushes, or plungers need to be a part of your personal real estate investing journey. 😁
4️⃣ How do you feel about tax benefits?
Okay, this might sound like a trick question, because who doesn’t WANT tax benefits, right??
In all honesty, we think investors just aren’t aware of the money-saving tax benefits that come from certain real estate investing strategies.
So, in case you weren’t aware, this could be a big factor in your investment decisions.
Multifamily apartment syndication offers massive tax perks to investors – including lots of depreciation-based write-offs. While other real estate investing strategies (like short-term rentals) do offer some tax incentives, the amount of write-off from apartment buildings are wayyy more extensive.
If tax benefits and savings sound appealing to you, check out all the amazing ways apartment syndication can help you save here: How to Kiss Your Tax Stress Goodbye. 💋
5️⃣ How much control do you want?
Our last question is about control – do you NEED control over your investments, or would you rather let go and let someone else make the daily decisions?
With short-term rental property investments, you maintain full control over every decision – from when to sell or refinance, to what type of improvements need to be made to each property.
If these types of decisions sound exciting, we get it! We love nerding out 🤓🤓 over how to get the most returns for our investors, as apartment syndicators.
If constant decision-making sounds like your literal nightmare, we don’t recommend active investing or taking on rental property ownership.
You may be more of a “leave it to the professionals” type of person, and we love that for you.
Multifamily apartment syndication allows you to put your trust into a team of syndicators, as they handle the active side of real estate investing – AKA getting you the most bag for your buck. 🙌
So, let’s do a brief recap of who would truly benefit the most from apartment syndication.
✔ You want high returns, but not so high that it can result in potentially huge losses.
✔ You want a stable, hard asset class because it offers lower risk.
✔ You want a low level of involvement, because you’d rather be living your life.
✔ You definitely want the chance to save tons in taxes.
✔ You want to stay in the loop, but not have to make daily decisions about your investments.
If this criterion rings true for you, we’ve got GREAT news.
You’re a perrrfect candidate for apartment syndication. ✨
Want to get started growing your wealth with less risk, effort, and stress? We know a place where you’ll get access to real estate investing resources, guidance, support, community, and exactly the right investment deals for you!
➡️ Come hang with us in the Kitti Freedom Club!
GET ME ON THE KITTI FREEDOM CLUB
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