It is not always easy to invest in real estate and not everyone will be successful in it. There are some potholes to avoid and many hurdles to jump. If you have a good REALTOR to guide you through, then you can make your real estate investment a very lucritive one. However, you have to ensure financial stability before you plunge into the game. Here are four different ways to do it:
REIT or Real Estate Investment Trust
One of the best ways to invest in real estate is the soft approach. It is called investing in real estate stocks and bonds. There will be a corporation responsible for helping investors and they will help them put the funds in the right place. It is called Real Estate Investment Trust (REIT). These real estate shares are bought and sold just like any other stock. It is also a way of making real income from a property. With REITS, investors can buy – not just the stocks of residential complexes, but malls and shopping complexes too.
Real Estate Trading
In this type of investment, buy properties and then hold on to them for a short period, say, 3-4 months and then you flip the property. By flipping, you can buy a property, make necessary repairs on it, do the maintenance and then sell it for a good profit. To make significant profit out of this, you need to buy a property that is significantly undervalued in the market. In flipping, you make short-term cash investments, but returns are great. This type of investment is a bit risky as the house may sit in the market for a long period. You should contact an experienced Realtor to increase your chancese of success.
Investing in low-income Housing
Many people are against the idea of investing in low-income housing. You may have to do the repairs on and off and you may not get the rent on time. But this is one way to earn long-term income. The average tenant occupancy is 3-5 years and then you can increase the rent when new tenants come in.
Another sure way to ensure success with your property is to buy land, divide it into plots and then sell them. You can definitely get good profit out of it. It is simple and you don’t have to wait a long time to earn a return on your money.
There are different ways to invest in Real estate but one should ensure good knowledge in Real estate domain before investing.