Many people don’t recognize they haven’t done a good job building wealth until it’s too late. About 50% of people in the United States don’t even have a retirement account.
The main thing you should know is that wealth isn’t built with a 9-to-5. You need to make some investments that’ll pay off for years to come. Billionaires and millionaires all over have been able to grow wealth using real estate as a foundation.
Here are some solid ways to invest in real estate no matter your starting point.
Find a Property That You Can Rent Out
Buying real estate and renting it out is one of the most tried and true ways to grow your wealth. You’ll have more financial freedom and options since these properties will give you a check every single month.
Look into hot renters’ markets that you can take advantage of, and choose properties that are attractive to people in the area.
After buying a rental property, you’ll need to decide whether you want to handle the day-to-day aspects of caring for it. Companies like reedyandcompany.com can also help you manage the property.
Here are some advantages to working with property management companies:
- You can collect rent and take care of tenants without the stress of having to handle the heavy lifting
- Property managers can market your property and find you new tenants
- They’ll make improvements to the property and handle repairs and groundskeeping
- Property management will help you have accurate records and accounting
- These pros will screen tenants so that you only get those that are trustworthy and high-quality
Choose a company with the skill level and experience needed to get the best from any rental.
Become an Airbnb Owner and Host
Collecting monthly rent can build your wealth, but you may also look into the Airbnb model. This is perfect if your property is located somewhere people travel frequently for vacations or business.
Airbnb offerings recently raked in close to $6 billion in a single year, representing a staggering 73% increase from the previous year. Go above and beyond to keep up with the property and provide for your travelers so that you get excellent reviews after each stay.
Purchase Some Land
Don’t forget about land when you’re ready to make real estate investments. Land is finite, so you can always expect demand to drive value. When you’re the owner of valuable land, you call the shots on what you do with it, and can always flip it for a profit when developers need it.
Another benefit is that buying land is often cheaper than physical buildings, and can give you a greater return on investment (ROI) over time.
Invest in Real Estate Stocks and Funds
Real estate investing strategies can also be fruitful without ever even seeing or touching a property. You can buy stocks related to the real estate market, or invest in funds from the comfort of your home.
Here are some excellent ways that you can buy shares in the real estate market:
- Invest in stocks related to building materials, companies that do a lot of developments, and commodities that make the real estate market move
- Look into Real Estate Investment Trusts (REITs) that include several different assets, so that you can diversify your investments
- Find Real Estate Investment Groups (REIGs) that can help you finance any number of real estate investments
The more you look into these investments, the more you’ll appreciate the convenience afforded to investors today.
Get Into Flipping Houses
Learning to flip houses can fetch you tremendous rewards from a single property. When you flip, you’re buying a home at a low price and then selling it for a larger profit.
This depends on your investment personality. Many people like the idea of holding a rental for several years, but you might prefer the lump sum cash that you get through flipping.
Flipping is helpful because you can bring in capital to use for other investments.
Offer Needed Commercial Services
Always look into providing value whenever you invest in real estate. There are several investment opportunities that are always in demand, such as:
- Opening up a laundromat
- Installing an automated car wash
- Buying a building and allowing another business owner to rent it out
- Create self-storage spaces
Focusing on the service aspect first will help you create a business model that will keep paying off for you for years to come.
Look Into Real Estate Crowdfunding
Consider real estate crowdfunding if you’re afraid of biting off more than you can chew. Crowdfunding lets you put your money together with others so that you all own shares of a property or project.
You can sign up for crowdfunding opportunities online, from research to signing the contract. This lets you get started with real estate investing without having to have a ton of money in the bank.
Rent a Room You Have Access To
If you really want to start small, consider renting out a room that you have access to. It could be a spare bedroom in your home, a finished basement, attic, or bonus room.
At the very least, you’ll have help paying your mortgage, and you can generate income that helps you to make other investments.
Explore Ways to Invest in Real Estate
Understanding these ways to invest in real estate will help you grow your wealth and diversify your portfolio. With a little bit of research and some trial and error, you are just steps away from becoming a seasoned real estate investor.
Start here and use us as your go-to source for real estate and investing tips.
