Yes, you can dive into the investment world without any advice or guidance, but when there are experienced real estate mentors in Los Angeles County, like Park Regency Realty, offering you advice, why would you? So, take the opportunity to learn from our professional, experienced guidance.
When you inquire about creating a portfolio, the first word from an experienced investor you’ll hear is to diversify! Diversity is the key to building a strong investment portfolio. Diversification has never been more critical in the Los Angeles County real estate market than it is today. It is critical if you’re goal is to build a stellar portfolio and build your wealth with real estate, stocks, and other assets.
Today, we’re going to talk about Los Angeles County Real Estate and the diversification within. With two categories, commercial and residential, there are ample opportunities to earn substantial returns. Here, we have highlighted 5 different types of real estate to include in your investment portfolio.
Land and Lots
Land is one thing that we can’t make more of, which makes it an excellent investment. When we consider the low-cost, low-maintenance, and versatility of it, you would wonder why it is overlooked by most.
Land can be utilized in so many ways when building a portfolio. Buying land in the San Fernando Valley in Los Angeles County gives you a place to build and sell. Or hold it until the market hits that peak point and sell it. Either way, for a seasoned investor or a newbie, having land in your portfolio is a great diversification!
Mobile Homes
An inexpensive way to add real estate for portfolio diversification is mobile homes. Downsizing homes and a possible recession in sight, mobile homes have become highly demanded. Many times, a few thousand dollars will buy a mobile home, and with a piece of land to set it on, you have a low-cost, low-maintenance piece of real estate in your portfolio.
Mobile homes tend to need more maintenance than site-built homes, and pre-owned ones often need repairs. Inspect the unit before buying it. Inquire if the land comes with the house, or will you need to have it moved. The right mobile home in the right place can be a great addition, no matter if you need some rehabbing before flipping or you’re going to hold on to it until the right time to sell. It won’t be long before it pays for itself.
Reach out to the Park Regency Realty for assistance in finding the Los Angeles County real estate investment properties
that are right for you. Call us now at 818-363-6116
Multi-Family Housing
When you’re looking for diversification in your portfolio, the multi-family has multiple streams of income. When one unit becomes vacant, you’ll still have income coming in from the other units. Of course, that will require finding another tenant to fill the vacant unit, which means more work for you with taking phone calls and screening tenants.
A downside and an upside to multi-family properties is maintenance, like the roofing will only need replacing once. It also means more people means more repairs, and more people living close together can bring the need for mediating disagreements. Multi-family housing is a smaller market and flipping it will take longer. Still, with the right tenants and pro guidance from the Los Angeles County real estate expert, there is the possibility of a substantial income with multi-family properties in your portfolio.
RELATED ARTICLE: Los Angeles Housing Market Stays Hot for Real Estate Investing
Commercial Properties
The right commercial property can be an extremely lucrative addition to your portfolio. Determine which type of commercial property in Los Angeles County will be the most viable and right for you:
- Medical
- Office
- Retail
- Other
Analyze and run the numbers on a few deals to get an idea of what is possible for each one. Look at the comps, net operating income, gross income, return rate, cap rate, and other factors. Most importantly, do you want a commercial property that has high-quality tenants occupying it, or do you want a property that will attract those types of clients?
REITs
REITs are a great way to generate profit with little risk, making this a popular investment vehicle for many Los Angeles County investors. REITs are a way to make a large investment with little risk when you don’t have much capital to work with if you research them thoroughly. You’ll be generating profits and lowering the risk simultaneously. There are different ways to add REITs to your portfolio:
- Use a broker to buy shares in publicly-traded REITs
- Invest in non-traded REITs
- Exchange-traded fund or mutual fund REITs
This investing requires doing some homework, but it is a good way for a newbie to experience. If you’re making money, your funds are making money with REITs.
At the Day’s End
Investing is always critical in a heated up and strong housing market like San Fernando Valley real estate market and same as Los Angeles County especially when it is an unbalanced market. So investors need to focus on investments that give a little comfort to build confidence. Remember, there are multiple factors in average returns, like the percentage of your investment in any market and any sector, that add sense to your purchases.
Park Regency Realty has been operating in the San Fernando Valley for almost 40 years. We are in the top 15 Los Angeles County real estate companies, and with over 110 full-time agents, we are trusted, strong, and growing. For expert advice in all forms of real estate, including REITs, we are the go-to you want. To learn more about how we can help you diversify your investment portfolio in Los Angeles County contact us online or give us a call today at 818-363-6116.