The presence of humankind on the globe also means they have been interests in real estate. Many experts think that the best way to go about this is by dividing your wealth into three equal parts and putting them in property, cash, and business. It is not a guarantee that you can randomly invest in real estate and get good returns. Over the years, people have learned that even the most acclaimed investment vehicles can fail. Back in the 1970s, the collapse of the economy took down the money investors had put into the limited liability partnerships. The modern REIT (real estate investment trust) came as a replacement of these partnerships. When people are looking to purchase real estate of a high value, this is a great move. When it comes to direct investments in any kind of business, you need to protect yourself. Buying a rental property in your name means anything happening in there will be your responsibility. Any accident the tenants sustain in the property can see you slapped with a lawsuit. Even when you are dealing with a tenant who is seeking to cause trouble, it can be quite an issue. You can waste thousands of dollars on the settlement and paying for legal representation not to forget the time it will take.
It is important for you to consider working with an attorney before you invest in a certain real estate. The lawyer will know best on whether your situation calls for having a limited partnership company or you should register a limited liability company. In such a case, the personal assets you own will be very different from the business investments. You can easily go bankrupt for not separating the company assets from your personal ones. For any person considering getting into real estate, a multi-family apartment is a great move. In the US, you can secure a modern apartment complex in one of the lush neighborhoods for as low as $60, 000. In cases where you have purchased the entire complex, you can rent it out to different people. You are assured that a good number of them will pay their rent on time. You won’t like the stress of dealing with one tenants who is dodgy in matters to do with rent payments. However, this will not be that simple if you do not have a seven-figure salary. However, you can make use of the companies that pool together funds from different people to buy such complexes. However, review the company’s portfolio to see how well they are doing.