Many people buy and sell real estate as a way to make a profit. They are able to invest by paying only a portion of the cost and making payments on the balance. The cost is interest, but it is affordable. There are times when you only need to pay 5% upfront as a down payment. This allows real estate investors to leverage properties they own by taking out a second mortgage so that they can make the down payment. Take a look at easy ways to get started in real estate investment.
- Start with Rental Properties
People who are just getting started in real estate investment often start with rental properties. This is a great option for anyone who knows how to do renovations and who is good at managing people. It takes a bit of capital to take care of any maintenance, and during months when there are vacancies, you will have to cover the costs. However, it provides regular income and the properties can appreciate over time.
- Try Real Estate Investment Groups (REIGS)
Another option for people starting out in real estate are REIGS. They work well for people who want to have the benefits of owning rental real estate without having to run the properties. This type of investment does require access to financing, and you will also need a capital cushion. This type of investment is similar to a mutual fund with rental properties as the assets. The management group handles everything and pays the income to the investors.
- You Can Flip Houses
If you have experience in real estate marketing or renovation, you can flip houses. You will need capital as well as the ability to make repairs. Your goal is to find properties that are undervalued, fix them up, and sell them for a profit. The idea is to make it happen in less than six months. Some people are called pure property flippers, and they do not make improvements. They simply buy the property and flip it as is. They need to know how to value real estate to be successful. If you get stuck with a property, it will cut into your profits.