Andrew Carnegie, a billionaire, once declared that 90 percent of people who are millionaires did so by investing in real estate.
If you are thinking about investing in real estate, you might be wondering how to get started. You may have heard horror stories of people who invested their money and suffered great losses.
Naturally, you don’t want this to happen to you. You can avoid the pitfalls that come with real estate investment if you are smart about the investment choices you make. Here are some tips that will assist you with getting into real estate investment.
1. Get Real Estate Investment Trusts
Investing in real estate investment trusts (REITs) means you are investing in properties without having to purchase them yourself. When you invest in a REITs) you are giving your money to a trust or to a large corporation that will purchase properties.
When the properties start to appreciate, you will get a portion of the dividends. REITs are usually bought and sold on the stock exchange.
This is one of the easiest and simplest ways for you to get into real estate investment without the risk of buying a property.
2. Try Crowdfunding Platforms
Crowdfunding is one of the best ways to start investing in real estate because it is open to all kinds of investors. There are plenty of options available to you if you go this route.
On some crowdfunding platforms, you can start it as low as $500. Crowdfunding platforms remove middleman brokers. This means you can start investing directly into the properties that they have vetted.
3. Flip Real Estate
A great way to get into real estate investment is to fix and flip properties. The first thing you will need to do is buy a residential property that is severely undervalued and in need of a few repairs. Once you have renovated it, you can then sell it at a higher price.
If you have difficulty selling the property at first, you may have to rent to tenants. Fixing and flipping can be very lucrative. You can make a lot of money in a short time.
However, you need to ensure that you select the right property. Make sure that you do thorough research before you invest your money. Go online and find a list of things to look for when buying property. This will ensure that you are well informed.
4. Start Doing Vacation Rentals
Many people are diving into real estate without even having to buy any new investment properties. If you already own a large home or a second home, you can try doing short-term rentals of the property.
You can rent out a room or a basement apartment in your home. If you have a vacation home, you can go online and join places like Airbnb, where you can rent it to vacationers.
As you can see, there are several options available to you if you decide to get into real estate investment. Real estate investment can be very lucrative. However, there are easy ways to get started without having to invest a lot of money.
Once you become seasoned in real estate investing, you can then begin to invest more money. If you would like more business tips, please visit that section of the website.