5 Ways To Begin Investing in Real Estate
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.