Strategies That Can Help You Invest in Real Estate

Written by Posted On Tuesday, 31 July 2018 11:55
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If you’re an avid investor that’s been thinking of entering the real estate world, then this article is for you. 

While real estate is a great way to diversify your investment portfolio, you might encounter a lot of problems along the way. Some will say that it requires too much maintenance, or that you’ll need to put in a lot of money upfront. 

Don’t let this stop you. 

As with anything, real estate investing comes with its pros and cons. But the pros far outweigh the cons, especially if you do it right. 

Read on for some helpful tips on how to invest in real estate in 2018. 

Flip Houses

While the practice of flipping homes disappeared for some time, the rise of property values has made this a great investment strategy once again. 

However, there’s an art to flipping homes. 

For example, you need to find high-value homes that need the least amount of renovations. This means that you won’t have to spend that much to increase the home’s aesthetic value; hence it will turn a handsome profit in the end. 

Aside from the price, you also need to pay attention to the location of the home as well as its needs. 

Invest in Rental Property

As real estate agents will tell you, one of the best ways to generate additional cash flow is to purchase a house and then rent it out. 

However, in order to achieve this, you have to buy a house that generates a higher income than the property tax, home insurance, and monthly mortgage payments that you’ll be making. 

The best part is that you can literally purchase properties that are already generating a rental income through online platforms like Roofstock. 

Just make sure that you have the down payment amount ready, as well as enough money to cover maintenance expenses. 

You’ll also be required to take responsibility for your tenants. This means screening new tenants before they move in.

If you still want a rental property but without the extra work, then you can always hire a property managing service to help you out. 

Invest in a Bigger Real Estate Deal

You know what they say, ‘go big or go home’, and that’s exactly what you’ll be doing when you pool your funds with others to invest in a large-scale property

Deals of this nature are widely available online, and they come with several benefits. For one, you won’t have to wait for a creditor’s approval in order to invest. And two, it comes with low minimum investment requirements. 

In fact, you can invest as little as $500 and still get a slice in a major cash-generating property. The best platforms for this type of investment include Fundrise and Realtyshares. 

Invest in Real Estate Investment Trusts

Real Estate Investment Trusts (REITs) make it easier for people to invest in property without worrying about the maintenance. 

Now, REITs come in three different types. There are mortgage REITs, equity REITs and hybrid REITs, which is a combination of the two. All three come with a high potential ROI and are very low-maintenance.  

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