The rewards of investing in real estate can be great, but it can be difficult to know where to start if you’re just getting started. There is a number of established, time-tested ways to get started investing in real estate as well as some innovative new ideas. Here are a few to think about.
1. Buying Probate Properties
Probate property is a home that belonged to someone who has died, leaving the property in the care of either heirs or the state. Buying probate property is an often-overlooked way to begin investing in real estate and offers a number of advantages:
- Low competition
- Below-market-value prices
- The relative ease of obtaining a clear title
Additionally, the sellers of a probate property are often motivated to move it quickly. Residential bridge loan lenders may be able to help you obtain the necessary funding in a short amount of time.
2. Fixing and Flipping
Many people make a tidy profit by purchasing a property to improve it and sell it once it is fixed up. Hard money loans for real estate may be a way for you to obtain the funding you need quickly. The short-term repayment requirements of the loan make it ideal for people who only intend to own the property long enough to restore it to a sellable condition, and if you’re not buying a home that you intend to occupy, you can likely obtain the necessary funds more quickly.
3. Renting a Portion of Your Existing Home
Some people choose to start real estate investment on a small scale by renting out a portion of a property that they already own to see if they’re suited to being a landlord. There are several ways to accomplish this. Some people rent rooms on a short-term basis through a service such as Airbnb, while others lease to long-term tenants.
4. Buy Into a Real Estate Investment Trust
If you aren’t cut out to be a landlord but still want to invest in real estate, a real estate investment trust can pay out high dividends quickly with a minimum of effort on your part. Publicly traded REITs are a good way to start out.
5. Invest Online
A popular way to invest in real estate for 2019 is to use an online real estate investment site to become a part of a bigger deal. The rules have changed so that you don’t have to be an accredited investor, and you may be able to become a part-owner for as little as $500 down.
Private lenders are available to help first-time investors obtain real estate. Find out more information about hard money loan products like bridging and probate lending today.