This post is one in a series of posts featuring my wife, The Mrs. I asked her to pretend that she was a wealthy woman with $2,000,000 (million) to invest. This money was needed to provide her for the rest of her life. She is to ask questions that might come up in the course of investigating a new investment advisor. Please check back for more questions.
Question # 3: How often do I get money from my real estate investment?
Their are many different types of real estate investments. They range from bare land and developed lots, to office buildings and houses.
Most of the investments that we assist our clients with are income-producing investments. This means that the properties have a tenant (renter), of some kind, that pays rent.
Typically, an agreement is made between a landlord and tenant through a written lease. The lease will spell out the details of how much the rent is and how often it will be paid.
The majority of leases are written to receive monthly rent. Some leases are over longer periods of time. For instance, agricultural land is generally leased on an annual basis. But the majority of leases are written with monthly rent.
Generally, Monthly Income
Most investors when they start out will invest in multi-family investments. Rent is usually collected on a monthly basis. Therefore, you can expect to get monthly income.
The amount of income can vary from month to month. Buildings need repairs, tenants move out, and taxes need to be paid all affecting net income.
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