Have you ever had a landlord? If so, you may not have ever dreamed of becoming one yourself. After all, fielding calls about overflowing toilets and massive bugs doesn’t exactly sound like fun. However, when you do it right, real estate investing can be quite lucrative.
Investing in real estate can also help you diversify your current platform and provide you with an additional stream of income. Even better, not all real estate investments require you to show up every time a tenant call. Unfortunately, many new investors don’t know how or where to begin their investing efforts. Some tips to help you get started can be found here.
Buy Real Estate Investment Trusts
A REIT gives you the opportunity to begin investing in real estate with no need to deal with the actual property or building. Similar to mutual funds in many ways, there are actually companies that own different commercial properties, such as hotels, apartments, retail spaces, and office buildings searching for investors. Usually, REITs will pay you higher dividends, which makes them a smart investment for retirement savings.
While REITs can be a smart investment, they may also be complex and varied. There are some that trade on an exchange, like stock, while others are publicly traded. The REIT type you buy is a significant factor in how much risk you take on, because non-traded REITs are not easy to sell, and they are often hard to value. As a new investor, it’s a good idea to stick with publicly-traded REITs, which can be bought from brokerage firms.
Use an Investing Platform Online
There are some companies that connect borrowers to investors who are willing to lend them money for an array of personal needs, including home renovation a wedding, or anything else. The platforms connect developers and investors who are interested in financing a project, using equity or debt. The goal for investors is to receive quarterly or monthly distributions as payment for taking on the risk and paying the fee to the platform.
Invest in a Rental Property
Rental properties are one of the most popular real estate investment options “regular” people are taking advantage of today. There is an array of properties on the market that are either in a short sale situation, foreclosure, or something else that makes them ideal to be used as a rental. Buy, flip, and rent – it’s a proven and effective way to make money and get your feet wet with your first real estate investment.
As you can see, there are several ways you can get started with real estate investing. Consider the options here to find the one that best suits your needs.