Residential properties, commercial buildings, and real estate investment trusts are common ways to invest using real estate, but there are many alternative methods you may not know about. Many alternative investing options offer benefits that traditional investing options don’t. Here’s everything you need to know about alternative real estate investments.
With the recent rise in remote work and a variety of start-up businesses looking for places to work, coworking spaces can be a valuable real estate investment. A coworking space is a building or area where remote and hybrid workers can gather to work on projects and have meetings. Some people who use coworking spaces work remotely and need a place to focus, while others are small businesses and start-ups that need areas to have meetings.
Coworking spaces often offer amenities like internet access, conference rooms, printers, and phones. Some spaces may also offer refreshments like coffee, tea, and snacks. These spaces can be a lucrative investment opportunity because their demand continues to rise, and they don’t require a high level of maintenance.
You can invest in coworking spaces by using a real estate investment trust. When investing in coworking spaces, it may be safer to choose those that have several locations and have been around longer, as they may be safer for your portfolio. You can also purchase the property and provide the coworking services yourself.
Mobile Home Parks
A mobile home park is an area of land on which mobile home owners rent space to place their homes. Mobile park owners usually provide some services like utilities and public areas. They also create lots on which mobile homes can sit. Parks can vary greatly in price and amenities, as some may offer services like pools or outdoor play areas, while others only offer the spaces and utilities for the homes. Many people choose to live in mobile home parks, which can make them a lucrative investment opportunity.
With the rise in property prices, there may be a higher demand for mobile home parks. Compared to other investment opportunities like traditional renting, mobile home parks require little maintenance, making them a great option. These parks are also low in cost per unit, making them a better investment than renting apartments or other properties. Additionally, mobile homeowners are responsible for the maintenance and upkeep of their homes, which further increases the investment value.
Raw land refers to areas with no buildings or structures but rather open land without any developments. This can be a good investment because it’s often cheaper than other real estate investments. There are many ways you can invest in raw land. The first is to purchase the land at a low price, then sell it to someone else at a higher price.
Another way to invest in raw land is to purchase the area and wait for it to appreciate. Because the price of land continues to increase year after year, if you wait for the land to increase in value, you can likely sell it for much more than you bought it. Raw land is not guaranteed to provide a return on your investment, so it may be one of the more risky alternative investment options on this list.
An RV park is where recreational vehicle owners can park and connect their vehicles to utilities like water and sewage. RV parks differ from campgrounds because they specifically accommodate these vehicles and offer the power, drinking water, sewer, and telephone services they can use. Many RV parks include amenities like grilling areas, bathrooms, convenience stores, laundry facilities, shelters, and pools. When RV owners stay at an RV park, they often pay a fee for each night they stay.
RV parks can be a lucrative alternative real estate investment because RV sales have increased, and more remote workers want to travel and stay at parks. You can invest in RV parks by including them in your real estate portfolio or purchase a park and manage the upkeep. Many modern RV enthusiasts prefer parks with pools, golfing, and recreation halls, so it can be beneficial to ensure the parks you invest in have these elements.
As the demand for senior housing increases, investing in this type of real estate may become more lucrative. The population continues to age, and many citizens need somewhere to live where they can get the care they need. There are many types of senior living, including independent living, age-restricted communities, nursing homes, assisted living facilities, and memory care locations.
To become an investor in senior housing, consider investing in a senior living fund. You can also assess your portfolio and invest in senior housing funds. Before investing in senior housing independently, it’s essential to understand the requirements, including staffing and meeting regulations. Consider investing with a partner who understands the industry to minimize your risk.
Storage facilities are where customers can place their belongings when they don’t have the space to store them. A storage facility may resemble a row of garages where people can place furniture and other belongings, or it may be indoors and offer temperature control and other amenities. Climate-controlled locations are often owned by professional storage companies that manage the clientele and provide more than 300 units at their location.
How you invest in self-storage depends on your lifestyle and what you want out of the investment. Those who want to be more hands-on may purchase a small storage area and learn how to operate them. If you prefer to minimize risk, consider investing with a REIT that includes storage facilities.
Diversify Your Portfolio With Titan Funding
If you’re looking for an alternative real estate investment, consider any of these options to help you diversify your portfolio. We hope this guide has been helpful to you in your real estate investment journey. For more information, contact our team of dedicated professionals to discuss your investment needs.