Real Estate is one of the top ranked ways to get returns on your initial investments. Getting into the Real Estate market can seem way beyond a person’s remit, however there are various ways to invest in Real Estate outside of simply just buying a house.
Below are the ten simple ways you can invest in real estate well and with extreme ease.
1. Buy Real Estate Investment Trusts (REITs)
Real Estate Investment Trusts are genuinely the companies that own, conduct or finance the income-generating real estate opportunities. In essence, the members of the company choose to pool their capital together.
This makes it much easier to get involved in bigger investments with better returns on their initial capital. This means the investors within the company can increase their property portfolio without having to buy or manage properties on their own.
2. Invest in Rental Properties
Those of you that have the capital to buy properties outright undoubtedly have the upper hand in the real estate market. By choosing to invest in rental properties, like the apartments for rent in San Antonio, you can allow yourself to have a steady second income, or choose to focus on growing your property empire.
Once you have initially purchased your first home many buyers then choose to set the rental value to cover their mortgage and other bills. This is a great way to off set any debts you may have and allow you to save to buy more.
3. Online Real Estate Investing Platforms
These online real estate investing platforms help connect potential investors with various investment opportunities. If you see a lucrative real estate opportunity, but don’t have the finances to invest alone, these platforms come in handy. They carefully research the crowd funding platforms, sponsors and other opportunities before you need to invest any money.
4. Flipping Houses
This is for the more DIY focused investor, house flipping means to buy a house that needs some work done to it. Usually houses that require renovations can be purchased at a considerably lower rate, making them a more money-savvy investment.
Another major advantage to flipping homes is that you can use the 1031 tax deferred exchange to avoid paying capital gains tax when you sell. The one caveat being you must reinvest those gains into another property of like kind. This trick is how investors scale their investments and retain their gains.
5. Renting Rooms
Another great way to earn money from your real estate investment could be to rent each room out separately. Once you have purchased a home, you could divide the house into separate rooms or flats and rent them out this way. This way your potential earnings could be much higher, especially in cities.
6. Real Estate Crowd Funding
This is very similar to investment platforms; it allows the funds of many to be joined together to get a more expensive property. However, the difference with this investment is that the pooled crowd funding amount can be loaned to developers to finance new developments.
7. Real Estate Limited Partnerships (RELP)
Real Estate Limited Partnerships (RELP) are another group of investors that tend to stick together when purchasing properties, developing them or leasing them. These partnerships are a safer option for investors and have a lot of legal structures behind them in order to protect initial investment and ensure that you see returns.
8. Being a Landlord
Becoming a landlord is a good way to diversify your income, however for some it may not be the best way to do so. As there is a large initial investment (buying a home/multiple houses) and upkeep costs, it is for a well-versed and knowledgeable property owner.
9. Invest In Your Home
For some it may be best to invest in your own property rather than purchase and rent out other dwellings. If you have a home in a great location, a big space or an specific niche, then investing in your own home would be a great way to increase its value. Consider home renovations in order to create your dream home.
There are many ways you can invest in your own home, it requires some initial money, but a lot less than buying new properties or joining other investors to buy more. This way when you sell you will have more money to use.
10. Buying a New Build
Purchasing a new build before they are built allows buyers to really reduce the actual cost of the home. The best time to do this is when the land is initially developed or sold.
Whilst this can require a lot of research and increasing personal relationships with landowners, it would be a good idea to do so for the lucrative reward. Then once the home is built you will be able to re-sell the property at the market value, usually a lot more than you have originally paid for it.
These are some very simple ways that you can invest in real estate. Your investments and returns rely heavily on the amount of money you initially invest, or if you are able to spot a very good deal ahead of time. This could mean that initially you should do some research in the areas that you hope to invest in.