Are you looking for a lucrative market in which to invest your money? Real estate has plenty of opportunities to get you started. Whether you have the capital now to invest in a large property or you’re at the beginning of your journey, take a look at the five ways you can invest in real estate.
1. REITs (Real Estate Investment Trusts)
REITs are commercial real estate properties owned by large companies. These properties can include warehouses, apartments, hospitals, hotels, etc. Typically, these trusts are sold on the major exchange—simply purchase a REIT like any other stock.
This may be an excellent starting investment if you’re familiar with the stock market. By going this route, you can build your portfolio of properties without ever making a physical transaction on a building or business.
2. REIGs (Real Estate Investment Groups)
An alternative to REITs is REIGs, which are more for investors who want to be a part of a rental property group but don’t want to deal with the tenants or the management aspects of owning condos or apartments. A company will manage the rentals as a whole, and you can invest small mutual funds into the group, essentially joining the organization.
You will need a decent amount of capital to get you on your feet with REIGs, but you have the option of owning one or multiple units and can purchase more as you make money.
3. Fix and Flip
If you love to get your hands dirty and enjoy a little fixer-upper, fixing and flipping properties are a great choice for your investment. However, you will need experience renovating homes—and don’t forget you’ll need to sell the real estate afterward. Budgets and the appropriate amount of capital are vital for the success of this project; use our hard money lenders in Tulsa to give you quick cash so you can get started on renovations almost immediately.
4. Rental Homes
Owning a rental property allows you tax-deductible expenses that could provide a steady source of income if you have a tenant. You may need to perform some renovations as you move through renters, so have a good handle on your handyman skills. You may experience vacancies from time to time, so have a backup plan in place for making money because you won’t be making a profit if no tenant is living in the home.
5. Online Real Estate Platform/Real Estate Crowdfunding
Investing in an online real estate platform, also known as real estate crowdfunding, is great for individuals who want to be a part of larger investments. This platform provides a source for investors to find and finance a real estate developer’s project. When you put money into the platform, you can diversify the locations of your property investments without purchasing a property physically.
Take into consideration how much money you are willing to invest right away and whether you want to be involved in the management process. Choose an option that fits your lifestyle—you can eventually branch out and add more homes or commercial properties to your portfolio. How will you make your next real estate investment?