There are ways to invest in real estate without having to be super wealthy. Watch this video to learn about five options available to you.
Today’s topic is near and dear to my heart: investing in real estate. I’d like to share five different ways you can go about investing in real estate.
There’s a myth that you have to be super wealthy to invest in real estate. But, based on five reasons, that is not true anymore. There are ways to invest with zero money down.
According to a recent survey, real estate investors now make about 15% of the population. That’s a staggering number. I never thought it’d be that high.
Here’s another statistic: 89% of US investors are interested in putting their money into real estate. There are all kinds of incentives and benefits, like cash flow, tax incentives, leverage, and value appreciation.
Now, the five ways you can invest in real estate:
1. Buy and rent (a.k.a. buy and hold). This is what I and a lot of other investors like to do. It puts your money to work for you. The ROI, if you buy the property right, blows away the stock market. This isn’t a blanket statement. However, there is a lot of research, due diligence, and comparative analysis required. And that’s what we’re here for. We have plug-and-play formulas built for you that we can send, and all you have to do is enter what you want, and it will tell you all the percentage of returns and other metrics you’ll need to know if you’re investing in real estate.
2. Buy and sell (a.k.a. flipping). This has become very mainstream nowadays. But you should be careful. There are stories you rarely hear about telling how people sometimes lose a little on their investment because they didn’t turn out the way they expected. Nevertheless, if you have a professional who knows how to buy property correctly, how to source properties, and how to estimate the cost of the remodel, it can make you a lot of money.
3. Real estate investment groups. These are people that buy properties, fix them up, and lease them out for you, so there’s already an established cap rate and immediate cash flow on the property from the day you purchase it. They’ll sell it to you, and you become a sort of passive investor on that real estate, because many times they’ll even provide the property management for you for whatever fee they charge.
4. Crowdfunding sites. These sites do large-scale investments and they allow you to piggyback on their huge investments as part of a small pool. You get a specific guaranteed return. Although, sometimes it can fluctuate a little.
5. REIT (real estate investment trust). This is similar to a mutual fund for real estate. You can put your money into one, and they usually pay a decent dividend payout, so your money is passively working for you. These are large-scale projects—big commercial buildings that have anchor tenants in most cases. It’s not as liquid as other options, but you can do it.
If you’re interested in real estate investment whatsoever, we’d love to discuss how we can help you with some of these options. For those that we are not licensed to do ourselves, we can put you in touch with individuals who are. Please feel free to give us a call!