Letting your money sit in a bank account is a bad idea if you want to retain your wealth. You lose purchasing power if your money earns no interest due to inflation. If you want to grow your wealth and retain your purchasing power, you need to start investing.
For many people, investing in real estate is the path they choose. Believe it or not, real estate is one of the most popular forms of investment and has many ways to get started.
With so many ways to invest in real estate, it pays to know your options before deciding. Keep reading to learn the common real estate investment methods you’ll find.
Fix and Flip
The fix and flip model is great for real estate investors who want to get hands-on with properties. You don’t buy homes to hold in this method. The fix and flip investing strategies require you to sell your home as soon as possible.
Your goal is to find an undervalued property that needs work to fix up. You want to increase the home’s value with your repairs and make a profit when you sell.
The next major way to invest in real estate is with rental properties. Unlike the fix and flip model, you’ll hold on to your real estate investments for a long time with rental properties. Your goal is to get tenants and use their rent payments to cover your mortgage from a company like trinitymortgagefund.com.
Because of this, you get a passive income source and can take advantage of property value increases. On top of that, you can also buy a distressed property to fix it to increase your net worth and borrowing power for more properties. For more information on rental or buy to let properties, research reputable property investment companies that offer information on the type of investment you’re looking to secure. RWinvest has many resources available, and they’re free to download for those wanting to find trusted investment advice.
Start an Airbnb
Normal rentals aren’t the only way to generate passive income anymore with real estate. Many homeowners are now renting their homes to travelers on Airbnb.
Airbnb is a marketplace that allows homeowners and anyone else to list their homes for rentals. Many people rent rooms and their entire homes. Others create unique experiences that you can’t find in regular hotel rooms.
These are short-term rentals that last days to weeks, which means you won’t need to deal with tenant checks and other common problems landlords deal with.
Buy a REIT
Do you want exposure to the real estate market and don’t want the hassle of buying and maintaining properties? If so, a REIT is a perfect option for you.
A REIT is a real estate investment trust. You commit money to the fund, which the fund uses to purchase real estate and maintain holdings. You’ll get a share of the fund based on how much you invest.
As a result, you’ll get a dividend paid out based on the real estate fund’s profit.
Do Enough Research on the Ways to Invest in Real Estate
There is a lot of money online when you invest in real estate, so you can’t afford to get started the wrong way. Now that you know more about the ways to invest in real estate, you’re in a better position to make better choices that match your needs. Start looking at your real estate investment options today to make your first purchase.
Are you interested in learning more about how to invest in real estate? Check out the blog for more real estate tips.