Want to diversify your investment profile?
Then you have to get into the real estate investment. Yes, it might seem a lot of work and time-consuming with the tenants calling about toilet issues, bugs infested houses, and so on. However, if you get it right then real estate investment can be quite profitable and can help you in diversifying your investment profile.
If you have already invested in mutual funds, stocks, policies, etc. and now want to utilize your extra cash and multiply it then real estate investment is a great way to do that. Although this type of investment is not for everyone, it is cost-effective and can help you in making millions.
Here are 5 ways in which you can get started with the real estate investment and make yourself rich without lifting up a finger.
Purchase Real Estate Investment Trusts (REIT)
A lot of people want to get started with the real estate investment but don’t want to handle too much work. For such people, investing in real estate investment trusts is an effective way to invest money in real estate while being only passively involved. What is a REIT? Well, a REIT is basically a fund which can be used to invest in the stocks and bonds of a real estate.
When compared to mutual funds, REITs often tend to own retail buildings, hotels, office buildings, and so on. They are also known to pay a higher dividend which is why investing in them makes a wise choice in your retirement.
You can further reinvest those dividends if you don’t require a steady flow of income. One thing to remember is that the type of REIT you purchase plays a major role in the risk you are taking, so be very careful.
Purchase Rental Properties
A great way to invest in real estate and get an extra monthly cash flow is by buying a house and then renting it out. However, you have to be careful when purchasing a rental property.
You will need to check whether the combined sum of home insurance payment, monthly mortgage payment, and the property tax payment is less than the appropriate rent of the property.
Get this wrong and you’re going end up with a foreclosure on your credit report. Yup, credit repair is an option, but why risk it at all?
Well, you can ensure this in several ways. A good thing would be to purchase a rental property in a high-rent area so you are bound to make a profit or you can keep your mortgage payment low so that you get a surplus amount of cash on your monthly rent.
However, you will need to deal with the complaint of and about the tenants so this one can be a bit of a hassle.
Rent a Part of your House
Yet another great way to check if real estate investment is for you or not is by starting to rent out a little portion of your own house. This way, you won’t be tying up your money in any real estate and will have a steady flow of monthly cash too. You have a couple of ways to do this.
If you have more rooms than you use, then you can rent out those rooms to tenants or if you own a duplex then you can simply rent your other apartment.
A lot of people also put their rooms on Airbnb which is a great way to earn some extra cash without having to put up with the same tenant for an extended period of time.
This method will not only give you an idea about how to be a landlord but will help in ensuring that your tenants don’t try to trick you or skip your rent payment. It is a great way to see if you ready to purchase a rental property and earn some extra cash every month.
Flip the Houses
One of the most popular methods to invest in real estate business is through flipping houses. What does flipping a house even mean?
Flipping a house means that you buy an under priced house, fix it up and add some extra features, and then sell it for a higher price to make a profit. It can be slightly risky though but if successful can be really beneficial and rewarding for you.
In order to do a successful flipping, you will need to purchase homes with a little fixing up so that you can perform the minor repairs and enhance its aesthetic value, increasing its price with it.
In such cases, having a trusted contractor can come handy as he can let you know the approximate cost of all the fixes before you decide to buy the property, making it easier for you to assess if it is worth purchasing or not.
Another thing to keep in mind is the quicker you sell the property, more profit you will make as you won’t be paying the mortgage of the property without getting any income from it.
Invest in Real Estate Deals Online
One of the best options for new real estate investors would be to join in a big real estate deal along with others to reduce the risk of loss. Such deals are usually on a commercial or residential property and can really help you in diversifying your portfolio. There are two advantages of investing in such real estate deals:
- Low Investment
The best part of these deals is that you can make a minimum investment in the property and still be an owner of it.
- Anyone can Invest
Another great advantage is that any common man can invest in such real estate investments; you don’t need to be an accredited investor. Although it is still true for a few real estate online platforms but it is no longer true for most types of investments.
So, make sure that you choose a good online platform for real estate deals which will allow you to invest low amounts and will offer you several perks and bonuses as well.
Courtesy TheTopTier Digital Media
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