Are you looking into chasing your dream of real estate investment while at the same time feeling self-doubt and anxiety about all the responsibilities purchasing housing, making renovations, and becoming a landlord might entail? You’re not alone. Real estate investing can be a lot of work–especially if you are just now diving into it. Many wannabe investors give up on their dreams before they even begin to take significant steps to achieve them, and this is because the idea of purchasing property with no guarantee that profit will ever be seen from this endeavor seems and feels risky.
But, did you know that there are methods of real estate investing that do not require you to purchase housing at all?
That’s right. Most beginner investors think of investing in the traditional sense, believing that real estate investing is all about buying up properties and turning a profit off of them over time. It’s true that this is one way to invest, but there are other methods which require less risk and money, allowing you to sleep more soundly at night. If you are interested in learning about how you can become a successful real estate investor that is on top of their game and has a wholistic view of what all real estate investing encompasses, you’ve come to the right place. Keep on reading to find out how you can begin investing right now.
Real Estate Investing–The Many Strategies
#1–Hard Money Loans
Much like yourself, there are many others out there who are looking to get their feet wet in real estate investing and most likely have a lot of the same concerns you do. And, let’s be honest–money is always a hurdle when it comes to investment. Rather than purchasing property yourself, you can offer hard loans to those investors who need extra funds for purchasing housing. Hard money loans usually have a very high interest rate, and you will be able to turn a generous profit off of these loans. If you are friends with a real estate investor who needs a little help, you can offer them a loan. This is an easy way to invest.
#2–Invest in Homebuilders
Another easy way to get into real estate investing is to buy purchasing stocks from homebuilding companies. The construction of new homes and repair of old ones is a big industry that you should pay attention to. If buying homes isn’t your cup of tea, you can put as much or as little money as you want into the companies associated with the housing industry.
#3–Invest in Real Estate Related Companies
If the idea of purchasing stocks in order to begin your real estate investing endeavor has piqued your interest, you should also know that buying stocks from real estate focused companies can be a profitable strategy as well. If you are willing to do the research to find out about various companies– such as hotel chains, timeshare companies, resort operators, etc.–then this is a potential path you could take.
#4–Invest in Exchange-Traded Funds
Investing in exchange-traded funds, or ETF’s, is another way you can profit from the real estate industry. They are similar to mutual funds and unique due to their real estate theme. This type of real estate investing involves you investing in a collection of stocks and bonds which are all in a singular fund. Like normal stocks, they are traded throughout the day.
#5–Invest in Real Estate Mutual Funds
Real estate mutual funds are different from ETF’s due to the fact that mutual funds are only traded at the end of the day. This method of real estate investing is a lot safer but often result in lower gains than ETF’s. Again, investing in a fund means investing in a collection of stock and bonds.
If you haven’t yet heard of Airbnb, where have you been? If you have an extra room in your home to rent out or will be out of town–away from home–for an extended period of time, this company will help you connect with travelers who need a place to say for a short length of time. This allows travelers to avoid the high price of hotel rooms while helping you make money off of your extra space.
#7–Manage Home Buyers
Sometimes buyers looking for a new home don’t have the time or expertise needed to find themselves a home, and this is a fact you can take advantage of. You can start your own business as a manager for home buyers and represent them in their search for the right house to purchase. If all goes well, you’ll be able to earn yourself a hefty commission off of your services.
#8–Manage Home Sellers
Buyers aren’t the only people in need of help–at times, sellers need it too. You can represent sellers by helping them find potential buyers and earn a commission this way as well.
#9–Rent Out Your Own Lease
Acquiring a lease for a commercial rental property and then renting the space out for more than you paid for it is a super simple way for you to get into real estate investing. This is a fool-proof strategy that involves very little risk as long as you are confident you can find tenants who are willing to come to an agreement with you.
#10–Become a Real Estate Agent
If you have some spare time on your hands, are a great salesman, and are skilled at forming connections in your community, becoming a real estate agent could be the perfect investment option for you. Once you acquire your license, you’ll be able to break into the industry, and your time as an agent will earn you lots of experience and knowledge of the real estate market.
#11–Become an Appraiser
Many people don’t see taking on the position of a real estate agent or appraiser as an actual investment, but–in fact–it is. The money you put into training to become an appraiser can eventually pay off in the end, as some appraisers are able to make a six-figure salary. This is a solid route to consider.
#12–Become an Inspector
You could also strive to become a real estate inspector, which is yet another career opportunity that relies on the business side of real estate investing. Inspectors are always in demand, as anyone who is looking to buy a house has to hire a licensed inspector before they can make a purchase. And again, if you have lots of connections within your community, you can live off of the business of your close friends and continue to build a clientele through their recommendations to others.
#13–Invest in Wholesaling Houses
Although quite difficult, you can invest in wholesaling houses in order to make a profit on real estate. This form of real estate investment involves you finding houses that are undervalued, striking a contract with the owners that specifies that the contract will be quickly handed over to different buyers, raising the price of the property, and then finding a buyer who is willing to purchase the property at your new, heightened price. It’s a lot of technical work, but ultimately, the difference in cost between the original listed price and your new asking price for the property is what you will make.
Success Is Knocking at Your Door
Real estate investing comes in many different colors and shapes, and there are tons of opportunities out there just waiting for you to take hold of them. Purchasing housing properties is not the only way to make an investment. You can start out small by taking one of the strategies outlined in this article and testing it out to see if real estate investing is truly what you want to do. Who knows? Maybe you’ll find that it’s exactly what you want to do and travel down a path where one day, at the end of the road, you are confident enough to the point that buying property is not out of the question anymore.
Whatever the case may be, there is no better time to start your real estate investing journey than now. By using one of these strategies, you can easily accomplish a new goal in life and feel a sense of achievement you have never felt before. It’s time to step out of your own home and see how you can add to real estate elsewhere while at the same time earning a profit. Success is waiting for you. Can you hear that? It’s knocking at your door.