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Important considerations before investing in real estate

Top view or flat lay of wood house model, coins, open notebook

Missouri is a state that has plenty of fantastic properties available that have high potential ROIs. Investing in real estate is something that can provide long-term profits, but as with any form of investment it also requires plenty of research. With so many types of properties on offer alongside a variety of investment vehicles, it is vital to take these considerations into account before getting started in property investment.


The first consideration to make will involve finances. It is important to be realistic about how much you can afford to invest. Don’t be put off if you don’t have the capital to purchase a property outright. There are many ways to get involved in real estate investment even with lower levels of capital. Commercial space for rent in St Louis is highly demanded which can make investment worthwhile. Find out about specific down payment requirements, and speak with a lender to figure out how much you can afford.

Passive vs Active Investing

Real estate investing is flexible. There is the option of becoming a full-time landlord or giving these responsibilities to a management company. Invest options such as REITs allow you to take a passive position whilst benefiting from the regular income. Consider your experience, and decide whether it would be better for you to manage the property and find tenants, or if it would be better to use professional services.

Asset Type

When it comes to investing in real estate, there are many asset types to consider. Residential homes, condos, office spaces, retail spaces, can all be worthwhile to invest in, but the decision also depends on local market factors. Commercial office space for lease can be highly attractive, which makes it a worthy investment to consider in Missouri.

Investment Timeline & Tax Benefits

It is crucial to be clear with your investment goals, and timeline. How long do you intend to invest for? The question of liquidity will also be important. Ideally, you should be looking to invest for the long-term, and it is crucial to understand whether the investment will be able to suit your specific requirements and needs. Most investments will offer specific tax benefits, and it is vital to understand how they work. Both passive and active investing can deliver specific tax benefits, and it is important to be able to align these benefits with your goal.

After weighing up these considerations, you can start to figure out which properties would suit your investment goals. It is always well worth consulting with a professional real estate team that understands the local real estate market, and is able to advise on various types of investments. For more information on the best commercial real estate in Missouri and top quality commercial real estate in St Louis, you can rely on the Cardinal Realty Group. We can work with you to find your ideal investment property. Call me, Harold Hanstein, on 636.225.0385 or send through an email to Hal(at)CardinalRealtyGroup(dotted)com.