Crypto, stocks, bonds, and mutual funds. That’s all we ever hear about on the news while millionaires laugh at us.
Well, that’s because most of them agree that real estate is still the best investment of the age, and they’re still buying them up like crazy!
Luckily, there’s nothing stopping you from joining in on the action. Let’s talk about how to start investing in real estate in 2022!
Choose a Type of Real Estate Investment
Before you get started, decide which type of investment you want to pursue. Here are the most popular ways to invest in real estate.
No matter how much money you have to invest, a REIT is a great way to get started.
Real estate investment trusts (REITs) are publicly-traded companies that invest in commercial real estate, and they have to pay out at least 90 percent of profits to shareholders in the form of dividends.
Think of it as collecting rent without doing any of the work. However, dividends are typically only 2.5 to four percent a year.
Flipping houses is a popular method for achieving a one-lump-sum return on your investment. In most cases, you buy a fixer-upper, put some work into it, and sell it for profit.
Of course, there’s a lot of uncertainty in this type of investment, but many people have made their fortunes from flipping houses.
Now, if you’re handy, you’ll limit your risk dramatically by reducing labor costs. The more you can do yourself, the less you’ll have to spend.
Assuming the house has “good bones”, this can be a lucrative side project, and you may be able to negotiate a great deal!
In theory, you can flip a house and start renting it out. However, not everybody has the money to pour into renovations without an immediate payout.
For that reason, most investors choose turnkey rental properties, where you already have tenants occupying the property before you buy.
Well, this limits your risk dramatically, as the building is likely in good standing and you won’t have to spend months looking for tenants right after purchasing.
Also, in most cases, you can get started for as little as 15 percent down. In some cases, even less. Let’s talk about that.
How To Start Investing in Real Estate
Always look for a real estate agent with experience in investment properties, as they know what to look for.
If you want to invest in rental houses but you don’t want to do all of the work involved with being a landlord, consider investing in an REIT or hiring a property manager.
Generally, property managers will do all of the work for only around 10% of your rental income!
Unlike most other types of investments, you only need a small amount down to secure a future in real estate. With the right real estate investor loans, you can become a landlord with nearly any financial situation.
Now that you know how to start investing in real estate, why wait? You can start building your secure retirement today with the right loans.
Get started today and keep following our blog for our latest investment tips!