Are you ready to try your hand at investing in property? The market is healthy enough currently to make investing lucrative once again. The idea is to invest wisely. You want to follow the old saying to buy low and sell high.
Beginning in property investing is much more involved than this, but if you are careful about how much financial risk you assume and focus on getting profits as high as possible, you can invest successfully. Here are four simple ways to start out.
1 ) Invest as Little as Possible
If you have equity in an existing property that you can tap and invest to buy a rental property, go ahead and do it. If the rents are going to cover any amount you finance, you will do well. Not everyone has equity sitting around ready to be cashed out. That does not mean that it is impossible to invest in property. You have options for investing with as little as zero dollars and as much as $5000. Talking with experts to get the right advice can sometimes make the difference in getting started. Contact the team at Dinas Estate Agents – Property investment
If wholesaling is allowed in your state, you can invest with literally no money at all. This is a process where you find the worst properties in relatively good neighborhoods. You make a contract to buy the property from the owner and take this offer to another investor or a realtor who will put the money down on the property and purchase it. They give you a finder’s fee for getting them in on a cheap buy that they rehab and sell for more.
You can take the money you make on your first wholesale deal and turn it into another and another. Eventually, you will have enough money to use to buy your own property to rent. There are helpful courses online to learn the specifics of how to work these types of deals.
If you have a few thousand dollars to play with you could start investing with a real estate investment club in your area. These are people that think like you do and know there is money to be made with the right investments. Members will pool their money together to buy properties and fix them up to rent them or sell them. They each share in the profits.
2) Buy REITs
These are real estate investment trusts. You can buy into them in your stock portfolio. They are a lot like investor groups, but they are usually headed by large companies that pool their resources to buy office buildings and retail spaces. They pay excellent dividends. Start out with REITs and you can invest without even buying property.
3) Hack a House
If you can afford to put money down on a property, consider house hacking. You buy a property with several bedroom and baths and live in one unit while renting out the rest. You can qualify for a residential loan with this setup and make a profit on a house you get to live in.
4) Fix and Flip
During the Recession of the last decade, fix and flips were a bit of a flop. Investors turned to rent out properties instead. The market has turned and while interest rates are inching up, you can get your toes wet in the property investment pool with fixing and flipping.
Again, you want to buy into what could be called the worst house in a good neighborhood. It takes time, money and sweat equity to rehab the place, but when you sell it you can easily make $20000 or so for a few months’ works.
There are plenty of options for how to invest in property. Some people choose to use a specialist property investment company and others will go out it alone. nonetheless there is always plenty of opportunity waiting for you.