Shares, forex and cryptocurrency are just some of the popular investment options out there. Another extremely popular option is real estate. Real estate has always been used for investing purposes and it doesn’t seem like this will change any time soon. Whether you’ve always dreamed of buying and selling properties or you just want to diversify your portfolio, now is just the right time to get into the world of real estate. With that said, let’s take a look at five easy ways to invest in real estate.
We’ve all seen TV shows where experts buy a home, renovate the entire place and sell it for profit. The best part of it is that you don’t necessarily have to be an expert to do it. As long as you understand the basics of home design and are ready to spend hours coming up with new ideas, you should be able to do it. All you need is enough money to get started and buy the first house you plan to flip. If you’re running a business or you invest in other stuff as well, you can even hire experts who’ll tackle the entire renovation project for you. This does reduce your profit but you get to focus on other things and still have your investments pay off.
One of the most popular ways of investing in real estate is buying rental property. Basically, it involves you buying rentals and collecting rent from your tenants at the end of each month. The reasons why this works are numerous. First of all, renting property helps maintain a healthy cash flow as your tenants pay you every month. The investment is paying for itself and there’s always a chance your properties will increase in value and you’ll be able to sell them for profit. Just bear in mind that being a landlord comes with certain responsibilities such as dealing with repairs. If you don’t have enough free time, you can hire a property manager who’ll do it for you.
We already talked about flipping houses but that isn’t the only way you can make a profit by buying and selling houses. If you’re looking to sell the house you live in, you can use the money you get to buy a home that’s livable but that requires plenty of work. That way, you and your family have somewhere to stay before the renovation project ends and you flip the house. Just bear in mind that it’s all about making the right moves at the right time and the best thing to do is connect with experts you can work with. For example, turn to people at Think Money and have them help you learn everything about the property market before you start looking for a live-in flip.
In case you're looking for an investment option similar to stock investing, REITs are something you just can't go wrong with. REITs or real estate investment trusts are all about entering the real estate market and earning a passive income. If you decide to do it, make sure you find the right REITs to join and keep a close eye on how your investments are doing. What's great about this method is that it allows you to put your money into high-end properties without breaking the bank. However, as mentioned above, REITs correlate highly with the stock market and aren't the best portfolio diversification option for most investors.
Crowdfunding isn't only the place where you can raise funds for starting a business. It's also where you can fund real estate investment projects without ever seeing the property you've put your money into. Some crowdfunding sites invest in real estate projects themselves while others lend money to investors who then use it to buy and sell property. There are plenty of real estate crowdfunding platforms at the moment and it’s up to you to choose the one that fits all your needs. No matter which platform you opt for, it’s critical to do some extra research on every project before you put your money into it.
Real estate sure is a great investment option and now you know how to do it. Opt for any of these five ideas and making a profit from your investments shouldn’t be tough.
I am Masum Hossain. I live in Dhaka, Bangladesh.