3 Ways You Can Invest in Real Estate

Chip and Joanna Gains, the Property Brothers, Hillary Farr, and David Visentin. These are all reasonably household names; do you recognize why? They’re all home improvement celebrities from HGTV. People across the world love to tune into these shows about real estate and property investment. It’s fun to get your creative juices flowing and consider ways to improve your own home. Whether you’re waiting to put in an offer on your own house or have an overall interest in real estate, there are plenty of ways to take that passion and turn it into a profit.

Investing in real estate is a trend that has also taken the world by storm. With so many options in this industry, no wonder it attracts so many different people. When it comes to investment, you can choose to actively be involved in your project or take more of an interest in passive investment opportunities. Real estate offers both. In general, there are about three separate ways to go if you’re interested in becoming a real estate investor. It is completely up to you to decide if you’re looking to roll up your sleeves and do some work or simply invest in a trust or other opportunities.

The possibilities are endless for you to grow your money while enjoying the real estate market and industry. This is your chance to make something beautiful and create unique projects and homes for future homeowners or even for yourself. Of course, this industry isn’t without its risks, but until you understand all your options, you’ll never be able to decide how to proceed. As you look to build your capital and find a high return on your investment, here are a few ways you can be a pro and invest in real estate.

Flipping Homes

One of the reasons people love HGTV so much is how well experts can completely transform a home. For this reason, flipping homes may be a good investment to make for those with experience as a contractor or interest in really getting down and dirty to improve your house. This type of real estate investor looks for lower-priced homes that may not be in the best shape, purchase them at a steal, put money and time into remodeling, then resell the property for a profit.

This is a great option for investment when you really know what you’re doing, but it can definitely be the riskiest choice. You need to make sure you’re staying on budget every step of the way and have a good relationship with your contractors and agents. For example, most homes immediately look more expensive after a bathroom remodel. Putting in nice sinks and countertops, fresh tiles, and a perfect vanity can take your bathroom from bland to fabulous in no time. This is where a great relationship with bathroom remodelers in Tampa or wherever you’re located can make all the difference. These experts will help you get the showers, tubs, and other accessories you need to be installed easily and at a good price. Stay on top of your remodel so you can turn the highest profit at the end of your home flip. Don’t let that flip flop, instead stay diligent and enjoy the journey of making a beautiful home from a less than ideal house.

Owning or Renting Property

If you are a homeowner, you already appreciate how much of an asset that is for your net worth. Owning capital can help with your credit or put you in a new asset class as long as you have a good borrower default. Take the opportunity to invest in yourself and your first home. Rather than renting places year after year, take the opportunity to buy an investment property with help from private money lenders for real estate that will be more flexible than the traditional lender. Don’t pay a higher interest rate when you can secure a private money loan for much less. Once you have the money, it’s time to pursue that real estate deal and put in an offer on your dream home that you can renovate and remodel as much as you desire.

Another great option for owning property is taking the opportunity to rent out rooms or the home itself. Being a landlord requires a certain amount of commitment and work, however. It is up to you to have good customer service, check your renters’ credit scores, and keep up as a renovator. But overall, if you charge rent that more than covers the mortgage payment, you are turning a profit without doing too much extra work. This is an example of how you can earn some passive income in real estate. Rent out your property, and you’re earning money. You can even be more hands-off by hiring a property manager to manage your homes and handle all the little details and discrepancies.

The beauty of renting your space is you can continue to grow this as a side business. If one property is doing well, how about buying one or two more. You can hire and use the same property manager for multiple locations, so you can sit back and enjoy the spoils of being a private investor. You’ll be amazed at how much you can make simply by renting out your property or investing in rentals.

Real Estate Investment Trusts (REITs)

When you talk about real estate investment, you may be more interested in the financial institution around it. There are ways to invest in real estate, just like you would invest in the stock market or other opportunities. Putting your money into a Real Estate Investment Trust means you are giving that investment company hard money to put into properties they support. This is a great way to diversify your investments because they remain liquid until you request your dividends are paid out. So with a minimum investment, you can buy into any investment platform, trade your investments like stock, and make your REIT a part of your overall investment portfolio.

The beauty of investing this way in real estate is that companies traditionally have a high payout. Companies pay out most of their income directly back to their investors, so you’re sure to turn a profit in no time. If you don’t have the initial funds for your minimum investment, there are other opportunities for first-time players to get into the game. Yieldstreet, for example, is a company that focuses on peer to peer and crowdfunding investments. Yieldstreet reviews will help reveal if they are a good fit for you. Decide if you want an established company with a secure type of investment with restrictions or if you’d rather work with fewer barriers but more risk. The choice is yours, though the end financial product should (with any luck) still bring you a profit and encourage your continued interest in real estate investment.

The beauty of the real estate business is the flexibility and multiple avenues to get involved. We covered investment opportunities, but you can also get involved as project managers, real estate agents, or contractors. The possibilities are endless, so go out and get excited about your primary residence while you consider ways to make even more money off the real estate industry.