Smart investors are constantly looking for ways to grow their money. Throughout the years, one of the soundest investments has been in real estate. The best portfolios have at least a little bit of real estate involved.
But how can you get started investing? Here are a few easy ways that just about anyone can start investing in real estate.
Rental Properties
Owning a rental property can be a great way to create somewhat passive income. There are some essential requirements – having the necessary patience to manage tenants as well as some DIY and renovation skills, not to mention the capital – but it can make for a great investment.
In more successful rental properties, the income generated through rent can be enough to sustain the property owner. From there, it becomes a matter of reinvesting and continuing to make that investment grow.
Real Estate Investment Groups
REIGs are very similar to Real Estate Investment Trusts (REITs) in that they are ideal for those who want the perks of owning a rental property without the hassle of day-to-day operations. It is a great way to generate additional income without having to be a landlord.
That said, investing in an REIG takes a cushion of capital and ease of access to financing. Think of REIGs as small mutual funds. The REIG will either buy or build a property and then the investors purchase through the group.
Flipping Houses
Television has glamorized this in recent years but it remains a viable way to make money in the real estate market. The concept is simple: buy a home, perform renovations to make it a better property, and flip it for a (hopefully) big profit.
There are some caveats here, though. Television shows have cut the experience down to 30 to 60 minutes. There is potentially a lot of work that goes into flipping a property. Do your homework and know the potential expenses before just jumping into a project. It could wind up costing you a ton otherwise.