If you have ever wanted to be a real estate investor now is the perfect time to get started. In many markets new investors are popping up all the time. One of the great things about investing in real estate is that anyone can do it. You can buy one property a year or one a week if that’s what you desire. Many investors from the outside think that rehabbing and flipping properties are the only ways to get started in the business. While these are currently the most popular they are far from the only options. If you are on the fence as to whether or not you want to tip your toe in the investing waters here are three options to consider.
Rehab/Flips.As mentioned this is currently the most popular form of real estate investing. All you need to do is turn on the TV almost any night and you are sure to find a show related to flipping. The idea of buying a property, fixing it up and quickly putting it back on the market may seem simple but there is a lot that goes into it. You need to get the property at a price low enough that even with the improvements there is still value. You also need capital to put the necessary work in and knowledge of the area to sell for the right price. The positive is that anyone can get started flipping houses tomorrow if they like. As long as you have financing in place, people to do the work and a real estate agent with knowledge of the market you can make your first offer today.
Rental properties. The opposite of flipping a property is keeping it in your portfolio for the long term. The right rental property can provide long term wealth that exceeds any other type of investment vehicle. While the idea of having a tenant pay down your mortgage and provide with you equity and cash flow is appealing not everyone is cut out to be a landlord. In addition to dealing with tenants you need to stay on top of the property. There will inevitably be problems along the way but in most cases there is also a pot of gold at the end of the rainbow. Owning a property free and clear and collecting 100% positive cash flow provides instant wealth and a multitude of options. This will not happen overnight but ultimately is the goal with most rental property investors.
Wholesale deals. If you want to get a taste of the real estate business without any of the risk wholesale deals are for you. Wholesale is simply getting a property to contract and assigning the contract to a fellow investor. You won’t make a large profit rather you will collect a fee and move on to the next deal. This is the least glamorous investing option because the ceiling is not nearly as high as the alternatives. There are many investors who make a steady income strictly from wholesaling.
There are ways to invest for almost every personality. If you are interested in real estate investing start by thinking about your risk tolerance and your goals. Those will help guide you to which area of the business is best for you. Learn as much as you can about the business and go for it. New investors are starting every day. Tomorrow could be you.