Tourism is one of the strongest and most lucrative industries around the world. It is not limited to the tourist attractions that earn the big bucks; the profit trickles down to other services associated with the presence of tourists. Hotels, restaurants, spas, even clinics post higher profits when they are around tourist destinations, especially during the most popular holidays and peak seasons.
You can profit from the influx of tourists from owning or managing a hotel or a similar residential building in areas that are likely to attract people. An apartment complex is one good option, as this promise tenants that may stay for far longer.
Buying as an LLC or Corporation
If you have a Limited Liability Company (LLC) or a corporation, you can use it to buy a residential building consisting of five or more units.You don’t even have to pay everything up front, according to the experts from the Bonneville Multifamily Capital. Apply for a multifamily loan, which is the type of loan typically used for buying properties that house more than one family. The minimum financing is 40 years for LLCs and corporations. You can get up to 90% of the property’s total value through this kind of loan. Your LLC or corporation may have to shoulder the remaining 10% together with a down payment and other related fees.
Buying Management Rights
Management rights are a popular choice for those who want to operate a hotel, motel, or similar facility. You don’t own the property, but you own the rights to manage it. This works well if you have the capital to pay for the rights, you want to do the job, don’t mind answering to a body corporate, and would like to live in the property.
Tourism is not your only reason for buying such properties. You can buy a building or rights to manage a building that’s near a university or a CBD, where people are always looking for a place to live.