Easy Ways to Start Investing in Real Estate
If you have an experience of living in a rented house, you certainly have an idea of how troublesome it is to be a landlord; having to entertain the many complaints of your tenants, can be tiring and frustrating at the same time. You are required to work hard to resolve any issues they face. Moreover, some landlords have expressed frustration over having to let their tenants use their car in cases of emergency.
However, investing in real estate can be truly profitable, if done the right way. Nevertheless, if you make wise real estate investments, it is sure to bring you that additional income and to ease you off the frustrating tasks of being an on-your-toes landlord. The problem is that once you decide on investing in real estate, you may not know where to begin, that is where we step in, with this piece of writing, to tidy things up for your convenience.
Invest in REITs
REITs or real estate investment trusts are companies that own commercial estate buildings in a wide range of property sectors. Such as government buildings, offices, schools, universities, hospitals and hotels. Most REITs trade on leading stock exchanges while some trade publicly. REITs offer a good return on the investments people make which makes it a considerable investment option especially during retirement. The high dividend investors receive from the RIETs can further be used as a reinvestment to grow their investment. The benefits of investment opportunity RIETs provide encourages the American citizens as well as banks and the Wall Street to receive high returns on investments which helps the community grow. New investors should try investing in public trading investments as the risk percentage in stock trading is generally higher. Since non-traded REITs are hard to be sold and they don’t come with a very high value. Publicly traded RIETs can be bought through brokerage firms. In case you do not have a brokerage account, it will take 20 minutes to open a new one. Also, most brokerage accounts don’t require any initial investments to begin with.
Flipping Around for Good
As an investor, you invest in an old house that costs little, then you dive into renovations to prep it for resell, expecting a good margin of profit. For a successful strategy in flipping, you may want to keep the renovation costs as low as possible, to expand your margin of profit at resell. This step, however, comes with a high demand of accuracy, of the exact cost the renovations may need, so as to avoid incurring any additional expenses that you may not be ready to sustain.
We suggest you venture in the presence of an experienced individual, be it a contractor or a friend, who could help with getting the estimations done rightly, and drop in their guidance wherever needed.
Time plays a vital role in making a flipping project successful. You may want to avoid delaying the resell, since you’re paying a mortgage and have not drawn an income, you are thus, making less money, which could be avoided if the property is done at the earliest.
That Room in Your House
Real estate comes with diverse opportunities for you to make money. Let’s say, you do not have the capital to make an investment, you could still make some money by renting out a room in your house.
For which, you could always rely on Airbnb to do the job of connecting you to potential renters. Airbnb also guarantees to take care of important issues, such as ensuring a prescreening of any potential renter and providing protection against damages.
This is a great way to make money for those who are unable to make an investment yet. The world of real estate is out there’ to bring a smile to almost everyone’s face.
Benefit from online real estate investing platform
Investors connect with platforms that connect them to real estate companies that are in need of investors to fund their projects through debt/equity. The investors expect a monthly or quarterly distribution. However, these companies will only select you as an investor if you have made a good amount of money in the last 2 years, starting from $200,000, or if you have a net worth starting from $1 million, which means to be part of these platforms as an investor you will have to qualify for an accredited investor.
Soaring Rental Market
Property value is rising rapidly compared to any other incomes, and this is why it has become difficult for renters to afford rented properties. This is one of the reasons why many young Americans tend to delay buying their own property and prefer living in rented homes or apartments. The rising property value has also resulted in people delaying life decisions such as starting their own family and getting married, since they remain deprived of the bliss of property ownership, and continue spending their 20s and 30s living in rented properties. All this means that the US rental market is soaring higher day by day. While it adds to huge benefits for property owners who can earn an attractive passive income by renting out their property.
Move to House Hacking
This is a hack that can work wonders in growing an attractive passive income for you. So this is done by buying a multi-family investment property with the intention of renting out the entire unit and using one of the portions of the property to live in yourself. Sounds smart, right? The income you will earn from the rent will help you cover up for all or most of the housing expense, which means you will be living in your own house at zero expense. It will sure be rewarding to those who already own their property, as all they will need to do is find tenants to rent any units of their house or even the entire house. While it is also possible for those who don’t have a house of their own. Simply buying a house on mortgage and then renting it out will help pay off the mortgage as well as provide you with a shelter above your head. House hacking is more of a long term plan that will help you gain financial independence and a maybe even an early and peaceful retirement.