Real estate investing can be an effortless side business and a wise way to diversify your investment portfolio. A buy-and-hold strategy involves buying real estate at a low price, fixing it up, renting it, or selling it for profit.
If you don’t feel like getting your hands dirty, you can purchase properties already performing well, such as those with tenants already in place. But that doesn’t mean you want to sit back and watch them perform – quite the opposite. The best real estate investments are proactive ones that require you to stay on top of your finances and marketing. You can get help of real estate agent like repcalgaryhomes.
Here in this post, we will discuss some of the best ways to invest in real estate, so let’s dive;
Buy REITs (real estate investment trusts)
Real estate investment trusts, or REITs, are publicly traded companies that own and operate commercial real estate worldwide—everything from grocery stores to apartment complexes and shopping centers. This may seem a little confusing at first, but it’s what allows you to invest in real estate without owning any physical property. Why consider investing in REITs? Some of the reasons include high dividend yields, low correlations to the broader market, high inflation protection, and broad diversification.
Use an online real estate investing platform.
Online real estate investing is an unfamiliar concept for many people, who may balk at the idea of putting their money in such a vehicle. But online platforms, while still young, are gaining traction. They’re more flexible than real estate investment trusts because they allow investors to own pieces of individual properties rather than entire buildings, offering greater transparency.
Think about investing in rental properties
Rental real estate will always be a great investment. As an investor, you have to consider the most significant return on your money, income. This can only come from three sources. The first and most obvious is rent. The second is appreciation, a long-term result of market value increases. The third way to make more money through rental properties is expense management. Many people believe that rental properties are the same as owning a business when they are two distinctly different entities treated differently.
Consider flipping investment properties.
In the property investment industry, flipping refers to buying a house, renovating it, and quickly selling it at a profit. Flipping houses is an excellent way to invest in real estate while reducing risk. While the process of flipping houses can prove profitable with hard work, skill, and the right know-how, many people who’ve never flipped a home start to dream about all the money they could make if they dared to become flippers.
Renting out a room
Renting a room can be a lucrative option for homeowners to generate extra income. It’s also a great way to make yourself feel like you live in a bustling, populated part of a big city instead of a suburban neighborhood with random pockets of houses. If you are willing to share, you can make nice cash while still living in your own house, provided your monthly costs don’t exceed your new rent money.