Investing in real estate is gainful if done in the right way. Real estate these days is a popular business opportunity among many investors. It helps diversify your income and can help you get more income. Being a landlord is a nice thing.
Most investors usually have a problem on how to start investing in real estate business, but they should not worry anymore as here are five simple ways that one can use to begin a flossy real estate business.
Fix up and resell properties
This is where you buy an inexpensive room and then you renovate and sell it at a profit. In order to avoid losses in this, you have to find the cost of repairs. You can do this by looking for a contractor to estimate for you the cost of renovation.
Use a crowd funding service
You work with companies that connect real estate developers to investors who are willing to fund your project through either debts or equity and then in exchange you pay them quarterly distributions or a certain amount per month. Investors are the ones who take considerable risks in putting money in your project.
Rent out a room
If you have any extra room in your apartment, you can rent it to temporary tenants by advertising it on social sites. You need to take caution in this because bringing strangers to your residence is risky as others can damage your property. Renting a room has its advantages as you can closely monitor your tenants and rent collection is easy. In this, you can taste how good it is to be a landlord.
Real estate investment trust (REIT)
If you can’t take an active role in real estate business, you can go for REITs. Maybe you are fixed for time but you want to invest.REITS will act as your broker. You will get paid from interests others are paying as mortgages. There are different types of REITs. You can easily approach one for your investment needs.
Invest in a more prominent real estate deal
You can do this by joining hands with other investors commercially or residentially and starting a more significant business. This is advantageous as you can become an owner by just investing a little and it is not a must you should be an accredited investor in the past to participate in the business.
Buy a rental property
You can buy an apartment in a place with high rents and then rent it out to tenants. You can bring in a lot of cash. You can buy a house with tenants already and get a lot of cash inflow every month. If you buy an apartment which has no occupants, you can advertise your rooms on social media like Facebook or other online platforms like OLX which people use to find rental homes. What you only need to look in this is whether you will get a profit after purchasing that apartment.