5 Ways to Start Real Estate Investing
Investing in real estate is an exciting prospect. Done correctly, it can be very rewarding, both personally and financially. If you’re considering real estate as a way to invest your money, you might not be sure where to start. Here are five ways to get started in real estate investing.
Buy a REIT
A REIT (real estate investment trust) involves the use of investor money to purchase and operate properties. It’s a great option for those who want to get into real estate but who don’t necessarily want to bother with a traditional real estate transaction. All you need to get started is investment capital.
Consider a Real Estate Investment Group
If you want to own real estate but want a more hands-off experience, you may consider a real estate investment group. You get the income and appreciation that comes with real estate investing but you don’t have the hassle of running or managing the properties. You can own one or more apartment or condo units but the company you purchase from handles all maintenance and other responsibilities.
Flip Properties
Flipping properties, also known as real estate trading, involves purchasing undervalued properties, fixing them up as inexpensively as possible and then selling them at a profit in just a few months. Property flipping is a bit more involved than other types of real estate investing. There’s a bit more risk, but the rewards can be great.
Become a Landlord
If you prefer a hands-on approach to your investment, consider becoming a landlord. As a landlord, you have the responsibility of dealing with tenants and taking care of necessary repairs. You can hire a property manager if you prefer to avoid dealing with tenants. In addition to the property value, you receive income through rent. Many of the expenses associated with your property are also tax-deductible.
Rent a Single Room
If you want to just dip your toes into real estate, consider renting out an extra room or apartment in your home. All you need is the extra space. To some, this can seem like a more accessible form of investing. You can draw up a lease agreement and take on a traditional tenant. Or, if you don’t want a long-term commitment, you can use a site like Airbnb.
There’s no one way to invest in real estate. You can choose the best option that suits your needs and financial situation, enabling you to get the most out of your investments.
