Investing In Orlando Real Estate

Investing In Orlando Real Estate

by Doug Lasley

The property market is awash with opportunity, creating more millionaires than anything else. There are many reasons why this is the case, and indeed many strategies that have been used. There is property development, buy-to-let, construction and many variations there of. One reason why real estate is so lucrative is that it's a business model that scales particularly well.

Why Does Real Estate Investment Scales So Well?

Real Estate investment scales much better than other business opportunities. One reason for this is that it's relatively easy to raise finance. Because real estate investment usually involves purchasing assets, rather than incurring expenses, financial services companies can relax knowing that they will be able to seize the property in the case of non-payment. When it comes to buy-to-let, as long as you have enough to place a deposit, you will be able to use rent to pay off interest repayments and and make contributions towards the actual loan. As you start to pay off more of the loan, using rental payments, you will be able to leverage the percentage of the mortgage that you have paid off to place a deposit on your next property - and so on. Also, it is relatively easy for one person to manage over $1 million worth of property assets - in some industries, such as car rental for example, the business model is far more administratively intensive.

Why Orlando Real Estate?

Orlando real estate investment is becoming a particularly attractive proposition for many reasons. A buoyant tourist-based economy attracts inwards investment and makes the real estate market in the area far more defensible when faced with economic issues that are specific to Orlando. This is because investment and demand come from within the Orlando area and further afield. While the stability that exists within the Orlando real estate market makes it an attractive opportunity, the diversity of its population also offers an additional reason why it can be a great option.

Investment Strategies

It has been said in the past, by management strategists, that diversification is only needed when you do not know what you are doing. While there may be some truth in this belief, you also have to consider the security that is offered by taking a multi-pronged approach to real estate investment. When it comes to Orlando real estate investment there is more than one approach that you can take. Why not consider one of the following, or a model that integrates more than one?

Property Development - buy properties, and invest in them in order to add value, then sell them. This type of property investment is good because it brings liquidity to the owner. With other forms of real estate investment it is often the case that profit ends up tied into assets.

Buy-to-let - buy properties with a view to renting them. This strategy works well in the Orlando area because it is possible to rent properties to tourists as well as renting them to regular tenants. The latter is less management intensive, and as a result means higher revenues -- but not necessarily higher profit margins. It's good to know that you can explore more than one option with this approach.