You love to invest, and most of your money is now in the stock market. You know it’s important to spread your money around, but you’re not sure if investing in real estate is right for you. You might think it costs a lot upfront or takes a lot of work every day. you can contact the Real Estate firm Cincinnati for more information.
And while some of that is true, this year there are new ways to invest in real estate that you may not have thought of before.
Putting money into real estate isn’t for everyone, but it can be a very good way to make money. Investing in real estate has made a lot of people a lot of money. Here are 5 different ways to invest in real estate if you want to try new things with your money.
1. Put your money into a bigger property deal
One of our favorite ways to invest in real estate is to pool our money with others to buy a bigger piece of property. This can be either a business or a home.
When you invest in a bigger real estate deal online, there are two great things:
Low minimums—depending on the platform you use, you can buy a property with as little as $500.
You don’t have to be an accredited investor. In the past, you had to be an accredited investor to take part in these types of investments, but that rule is no longer in place.
So, if you want to make your investments more diverse but don’t have a lot of money, this could be a good way to start.
We suggest the following three ways to invest in real estate:
Fundraise is a real estate investment trust (REIT) that lets you put your money into a basket of real estate. As such, you get a little diversification on your real estate investment. Also, you can start with only $500. Check out Fundrise here.
RealtyMogul lets investors choose from a wide range of properties, including residential, mixed-use, commercial, and retail. They don’t charge fees to their investors; instead, the property owners have to pay those fees. After the project is funded, investors can start getting their money back in just a few weeks. We work with RealtyMogul, which we think is one of the best platforms available right now.
Streetwise is a relatively new private equity REIT that focuses on real estate investments that bring in money. One of the better ways to set prices. Open to both qualified investors and those who are not. Check out Streetwise here >>
If you want to look at more options, we compared all the major real estate investing sites here.
2. Buy a place to rent out
Buying houses and renting them out is a great way to make more money every month.
To do this, you must buy a house with a monthly mortgage payment, home insurance payment, and property tax payment that is less than the rent the house brings in. There are several ways to do this, such as buying in an area with high rents or putting a lot of money down so that your mortgage payment is low.
Roofstock is one of our favorite online ways to do this. Online, it is easy to buy single-family rental homes that already have tenants and bring in money.
There are two bad things about being the owner of a rental property. First, it usually costs a lot of money upfront, between the down payment and any repairs that need to be done. You need to figure out if the money you spend will be worth it.
The other big problem with owning real estate is having to deal with tenants. Before you let renters move in, you’ll need to check them out. You’re also likely to hear sad stories, so you’ll need to learn how to be firm with renters. If you give in to people easily, it might be best to let a property management service take care of your rental properties. In either case, there is always work to do.
Depending on who you ask, renting out a home can be a very good way to make money. And if you do the work upfront to find those hidden gems, you can let a property management service take care of the rest. This can be a semi-passive way to make money from rental properties.
3. Flipping Houses
Flipping houses can be a little risky, but it can also bring in a lot of money. And because home prices are going up again, now is a good time to start flipping homes. To flip a house, you buy it for less than it’s worth on the market, fix it up, and then sell it for a profit.
If you want to be a successful house flipper, you need to look for cheap homes. The less work you have to do, the better. The best house to flip is one that only needs small repairs to make it look nice. Then you could make the house look better and sell it for a profit.
When you decide to flip a house, you have to be ready for the fact that it might not sell quickly or for much of a profit. When you flip houses, you take a big risk, so you need to pay close attention to where the house is, what it needs, and how much it costs. But if you know how to turn houses around, this could be one of the best investments you’ve ever made.
Check out this great guide to flipping houses with little money down.
4. Rent out a part of your current house
If you’re not sure you want to buy a house just to get your money back little by little, you could try renting out a part of it first (also known as house hacking). You can do this in a few different ways.
First, you could rent out a spare room or the basement of your house. If you haven’t bought your first home yet and like this idea, you could buy a duplex and live in one apartment while renting out the other.
When you rent out part of your house, you get to keep a close eye on your tenant. When you both live in the same house, it’s less likely that a tenant will try to not pay the rent. By renting out a part of your house, you can also see what it’s like to be a landlord without having to spend a lot of money.
If you’re thinking about renting a room to a stranger, you should read what our friend Michelle wrote about it.
5. Real Estate Investment Trusts (REIT)
If you think real estate is a good investment but don’t want to be as involved, you could invest in it on the stock market.
Real Estate Investment Trusts, or REITs, are a great way to invest in real estate without getting your hands dirty. A REIT is a fund that is set up to invest in real estate-related mortgages, bonds, and stocks.
There are a few different kinds of REITs, including equity, mortgage, and hybrid. An equity REIT is a company that invests in real estate. REIT invests in mortgages, and a hybrid is a combination of REIT and mortgages. All three tend to have high returns, which means that you get your money back from the interest that other people pay on their mortgages.
If you don’t have much time, you might want to invest in REITs.
American Capital Agency (NASDAQ: AGNC), Annaly (NYSE: NLY), and Realty Income are some of the most well-known REITs (NYSE: O).
You can buy shares of a REIT from any broker you like. Both Fidelity and TD Ameritrade are good.
