Real Estate Investment Opportunities
November 19, 2011 Leave a comment
Finding Investment Opportunities with Legs
If you’re an investor, you’ve probably focused strictly on property itself as the only investment in the real estate sector that matters. If you were investing in gold, you might attracted by the security. Gold is popular but people may give it more credit than it deserves as a safe or profitable investment, or one that has a terrific upside potential. Fact is, it might not appreciate much beyond its current price.
If you invest in Gold stocks (the gold mining company) you have a better chance. The profit margin for a mining company is huge because its fixed costs are stable. The more they mine, the more you earn and they’ll make a lot more than a 10% increase in the price of gold bullion itself. The key is leverage, and add to that a variety of profit opportunities and you have a winning formula.
The same principle applies to real estate. Today’s real estate market is complex, highly regulated, and the macro economy is hurting. Competition from FSBO and Discount brokers also makes it tough for real estate brokerages. Profit margins are down and sales are not what they used to be (except for Canada which is booming). Smaller, more versatile companies possessing multiple, mutually-supporting businesses, can fare well, especially if they intend to be market leaders, can fare well. Such innovative, entrepreneurial businesses can intiate a number of enterprises ranging from landscaping to home financing to marketing services in any city in North America. If the markets are poor where you are then why not go where they are good?
If you’re looking for unique investment opportunities in the real estate sector, please inquire. From mortgage sales to online hotel marketing to property sales, there are opportunities to profit in this business, particularly in Canada. Please contact me if you have venture capital or just have the funds to launch new startups.