Although many individuals dream of owning a house and a bit of property, others with great wealth often invest their income in a wide variety of business ventures. However, one sound investment that many can make focuses on real estate. Therefore, it can be helpful to look at which three common types of real estate investments top earners choose if you wish to emulate their investment strategies.
- Timber Real Estate
Timber can make a good investment for several reasons. Specifically, timber prices tend not to shift due to financial instability and inflation that can hamper those who have made investments in stocks. Furthermore, the greater stability of a timber investment resides partly with the idea that wood and timber investments do not face as much of the rise and fall with the unpredictability of stock investments or commercial real estate price fluctuations. For example, investors such as the Fisher Family and Ford Family have invested heavily in the timber industry with combined landholdings estimated at over one million acres.
- Ranch and Farm Real Estate
Many top investors own ranches and farms as part of their investment portfolios. Their acquisitions may have come through inheritance, as several ranches boast long-time family ownership spanning many decades Others have purchased land for ranching and farming purposes. Ranches might raise commercial livestock, while others might utilize the land’s natural beauty as working ranches or as retreats and resorts. For instance, some large investors, like Stefan Soloviev, use a portion of their farmland to raise crops, including corn, sunflowers and wheat.
- Renewable Energy Real Estate
Renewable energy continues as a hot topic on which investors keep an eye, and for good reasons. Because of renewable energy’s long-term power storage capabilities, renewable energy makes an attractive alternative to more quickly expiring fossil fuels. This type of energy also helps protect the environment as no greenhouse gas emissions get created when renewable energy gets produced. One popular form of renewable energy gets generated on wind power farms. Wind runs through the propellor of a wind turbine, and when the propellor moves, it creates electricity from the action of the wind on the turbine components. Investor Philip Anschutz indicates plans for a proposed wind farm on his land estimated at over 400,000 acres, and rumors suggest it may size up as one of the largest in the world once completed.
Although not everyone has the kind of ready capital that leading investors generate, those with smaller portfolios can learn much from the tactics utilized by those in the top financial brackets and learn more about real estate investment opportunities.