Wealth-Coaching

If you are a person considering real estate investment for the first time, you need to decide your investment strategy.

Do you want to eventually get large and profitable, or you like the peaceful lull of a quiet real estate investment plan?

"I have found real estate provides rewards without the risk of other types of investments," says Mr. Castro, who currently has a dozen condominium and house projects under construction in New Jersey and Arizona. "Some people think about buying a…house, fixing it up, and dealing with all the headaches of renting. That’s not my idea – I want a substantial return. Developing and building provide immediate rewards."

"Some sophisticated Hispanic investors have seen respectable returns in comparison to investments in the stock market," says Marjorie Torres, CEO of Concrete Stories, a New York-based real estate consulting firm. In the current credit market, a $1 million cash investment becomes a $5 million to $10 million leveraged asset. Ms. Torres suggests these strategies, based on the investor’s risk-reward goals:

• Land Assemblage: Buying adjacent parcels and creating development rights; risky but can yield 40 percent returns or better.
• Development: Building properties and selling units can deliver more than 25 percent returns.
• Repositioning: Re-branding semi-vacant buildings and getting new tenants (15-plus percent returns).
• Management: Leasing space yields about 7 percent returns or better.

It’s ok to START small, but you can’t THINK small.