The 5 ways you can invest in real estate
Being a landlord is not an easy job due to the different responsibilities that come with this title. Investing in real estate can, however, help you diversify your portfolio and make it easy to get an additional source of income. You don’t have to deal with the difficult chores of a landlord for you to invest in real estate. Most new investors lack knowledge regarding their options when it comes to investing in real estate. The following options can help.
You can invest without owning the physical real estate. Achieve this by buying real estate investment trusts (REITs). Consult Atlanta, GA commercial real estate for you to find retail spaces, office building, hotels, or even apartments that you can invest in. REITs are lucrative since they pay high dividends to investors who are not looking for regular income but rather an opportunity to expand their investment portfolio even further. Since REITs vary, you need to assess your risk tolerance to determine the right form for you.
Make use of a real estate platform
Online real estate platforms link up investors with real estate developers. This option lets you finance a project through equity or debt as you anticipate to receive monthly distributions. You have to pay a certain amount to the online real estate platform for the connection. Beware that this form of investment is illiquid, making it hard to unload them.
Consider investing in rental properties
Many investors nowadays are exploring house hacking. This is where you decide to reside in your investment property as you rent out a few units or rooms to tenants. You can buy a condo and occupy a section of it as you rent out the rooms you don’t need. House hacking allows you to earn income from your investment as you monitor your property. If you don’t want to deal with a lot of issues, you can hire the services of a property manager to help you out.
Fix properties and resell them
You can also look for an underpriced home that is not in the best condition then renovate it. Consider the costs of renovating it and see how much profit you can make from the investment. Once you have raised the value of the home, you can resell it to make a profit. If you are not experienced in house flipping, you can work with a contractor who can help you estimate the expenses of renovating the property.
You may face a challenge of having to hold on to the property for a while since you may have to pay back a mortgage you took for the house without getting income to pay it back. You can lower the risk of flipping houses by residing in the property as you do renovations.
Rent a part of your home
Do you have a basement or extra room that you don’t use at your home? Make use of sites such as Airbnb to rent it out. Ensure you take a short-term tenant prescreened by the site.