Real estate is a multi-faceted investment playground. Investors from all walks of life can get in on the fun. Most traditional mindsets think that you can only invest in real estate if you have a lot of money. The truth is that there are also investing options with low input. As with any investment, there is no guarantee, but the nice thing about real estate is that there is always an asset that can be sold. Real estate usually holds its value and increases over time as well. Here are six real estate options you don’t want to miss.
If you’ve watched enough DIY shows, you know how popular this one is. You take a run-down house and turn it into a dream home to the oohs and ahhs of the homeowners. Real fix and flip investing looks a bit different than the big productions that you see on T.V., but the impact can be just as amazing. This one requires you to buy a home that you can renovate and repair to then re-sell.
You can do most of the work yourself if you’re handy or hire out for the entire job. It depends on your level of comfort and expertise. One important factor to remember is to always follow local codes on changes you make. Many times, flippers find homes at auction so they can increase their profit margin after they do the repairs.
Want to do something from the comfort of your home? A newer investing option is to wholesale houses. You get the contract for a home and then re-sell it to someone else before you ever take possession of the home. You can buy homes sight unseen and then re-sell them to flippers and other people looking for real estate without ever leaving your home. With wholesaling, you are selling off the contract to buy. It’s a lucrative real estate investing strategy for those who learn how to do it.
Rental properties are still a great option. While there are plenty of risks, with a diverse portfolio, there are also plenty of rewards. Airbnb, VRBO, and similar sites offer the freedom to rent out properties to short-term renters on vacation or as corporate rentals. Furnished apartments in some cities can yield a huge profit. Short-term renters love staying in well-designed homes and apartments. And the savvy real estate investor can make smart choices in their rentals to give them great reviews and keep people coming back for more.
Other investors love owning apartment complexes, duplexes, and houses to rent out. Commercial rentals are also popular with real estate investors because they have long-term leases and typically require less oversight. To manage these properties, investors typically employ different property management companies to oversee repairs and payments.
Buy Real Estate Stocks
If you’re learning about the stock market, there are ways to invest in real estate stocks to get in on the real estate game. You can usually buy as much or as little as you want. Investing apps make this process easier than ever before. You’ll also want to investigate REITs, real estate investment trusts.
Rent Out Part of Your Home
If you have a basement or a room to rent, you can make some cash on renting it out. This is a good place to start for the adventurous real estate investor. It’s also a good “use what you have” strategy to get started. You can save up for your first rental property or pay off bills by renting what you already own. With Airbnb and similar sites, it’s easy to rent out the extra space in your home.
Sell Real Estate
While not technically investing, becoming a real estate agent has a lot of perks. If you’re planning to buy or sell real estate regularly, you’ll save a lot of money if you become the owner/realtor. Those 3-6% fees add up quickly. When you’re the agent, you don’t have to pay them. You can also benefit from being an agent if you plan to fix and flip homes. Selling real estate helps you earn good money while you connect with people in your community and help bring quality properties for sale.