Cash In from the “3 T’s” with Long Term Investing in Real Estate

A recent article in the Financial Times stated that the revival in American cities was being driven by the “3Ts-Technology, Tolerance, and Talent.”  By far, the best way to profit from this is passive, long term investing in real estate in a city such as Chicago.

When a passive investor buys real estate in a city like Chicago that is benefiting from “technology, tolerance and talent,” profits will be made from the long term trends of that area.  The real estate investing can be done in a variety of different manners:  flipping properties, financing private mortgage notes, and acquiring turnkey real estate properties can all be rewarding.  Each has proven to be profitable.

While flipping properties, buying real estate and then selling it for a profit, may not seem to be passively investing for the long term, for the savvy investor it can be.  By going with a company such as EquityBuild, a real estate investment firm, a passive entity, be it a person or a corporation, can profit over the long term from flipping properties by funding the deals.  Jerry Cohen, President and Founder of EquityBuild, has been a principal in more than 2000 real estate transactions since 1984, many of which were profitably flipping properties.  Passively investing with EquityBuild for the long term will allow for sustainable profits to be booked from flipping properties.

The same is true with turnkey properties.

These are properties that have been purchased, fixed up, and then rented out with a suitable tenant and strong management in place from a company like EquityBuild.  This is a very low risk way for an investor to profit from areas benefiting from the “3Ts.”  The rental income offers a stream of funds from this high yield real estate investing.  Buying turnkey properties protects real estate investors from costly mistakes.  As there is often times a 30-year mortgage attached to a property, investors must avoid expensive errors.

Investing in private mortgage notes is another effective, proven way to profit from the “3Ts.”  Private mortgage notes are loans made by investors to parties to buy a property.  Private mortgage notes can be from an individual or group of investors.  It is best for investors to participate with others in a consortium financing a wide range of real estate so as to have diversity in the portfolio. These are excellent income investments, but like dividend stocks, except for the yields can be much higher, reaching into the double digits.  The terms of the private mortgage notes are completely flexible, too, set between the borrower and the lender.

Real estate investing allows for the owner(s) of the asset to profit in a variety of forms from the evolving forces in society.  As pointed out in the Financial Times piece by Edward Luce, “Rebirth of the US City,” technology, tolerance, and talent are driving real estate prices higher in Chicago and other cities.  Long term investing with a passive approach will produce profits due to these dominant trends that are reshaping America, resulting in gains for those buying real estate.