Being a landlord can be a tricky business and often doesn’t seem to be the most appealing job. If you do it right though, investing in real estate can be very profitable and give you a reliable passive income.
Despite the normal at-home issues such as blocked toilets and leaking pipes, landlords choose to keep on expanding their investment portfolio as they know it’s a great stream of income.
If you are looking to dive into this area and make a decent return on investment, it does help to do some research and create the right mindset. Real estate is more of a long-term project that requires patience but can be highly rewarding. This guide will provide five main options, from difficult to easy, that will help you get started in your investment and start reaping the rewards.
Four investment types
1. Purchasing REITs dividend
These are real estate investment trusts that help you put your money down and cancels out the need to have the physical property itself. They are a little like mutual funds in terms of the main company owning the building, condos, hotels and more. When you sign up to this kind of investment trust, you can expect high dividends hence making it an attractive retirement option. If you wish to keep building your profits however, several choose to put their profits back into further investments.
TOP TIP: Are you new to real estate? Sticking to public trusts usually handled by online brokers can be a great way to start. This is because the process can be tricky and very convoluted. The final RIET you choose will determine the amount of risk you are willing to take.
2. Sign up to a digital real estate platform
There are various online platforms that help those wanting a loan and investors come together. These investors are great people to connect with as they are willing to lend money for several things such as renovations. They will look at what you are trying to do and get out from the process and will help you finance it. What you need to expect from this process is that you will give away a certain percentage from your profits either every month or every quarter. This is therefore a great option if you have more limited funds at the start but want to take the leap into real estate investment.
3. Don’t ignore the rental market
Rental properties are a strong investment too. You can always live in the flat or house you choose whilst you rent out and make money on the side. You should be able to cover your expenses whilst bringing in some extra cash this way.
4. Renovate a property
This often turns into a passion for some people who love to give unappreciated homes they get for a good price a bit of love. This way you can make a big profit on as the property continues to gain more value over the years. Doing the above are great ways to kick-start your investment in real estate and start building your portfolio.