Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world
– Franklin D. Roosevelt, U.S. president
Building wealth with real estate isn’t solely designed for the wealthy with deep pockets, it is open to anyone who is ready and willing to. Investment can seem like a daunting idea but done right, real estate investing can prove to be a lucrative income stream. Intentionally done, investors can enjoy predictable cash flow, excellent returns, and portfolio diversification—and it’s possible to leverage real estate to build wealth.
WHO SHOULD INVEST IN REAL ESTATE?
You don’t have to be a specific type of person or have a particular financial status to invest in real estate. If you desire to grow and diversify your investment portfolio and enjoy cash flow, you should invest in real estate. You can be:
- An investor looking to diversify their investments
- Anyone looking to start investing
- An existing investor looking for cash flow
HOW CAN YOU INVEST IN REAL ESTATE?
Many new investors don’t know where or how to invest in real estate and this can lead a lot of people to avoid real estate investments because they think they are scary or need a lot of money to invest. However, with the right guidance and direction, anyone can begin the journey into real estate investment. Here are four ways you can invest in real estate this year:
1. Rental properties
Investing in rental properties like land ownership is one of the oldest real estate investments. It’s quite simple: You purchase a property and then rent it out to tenants. However, the property maintenance costs are your responsibility as the landlord. It can be a lucrative business for those who want a hands-on approach, and who are patient enough to manage tenants. Although this strategy does not require significant capital, it does require substantial funds to cover the maintenance costs and to cover vacant months.
2. House flipping
Some people take it a step further, by buying houses to renovate and resell. Although it requires a substantial amount of time and capital it also has the potential to produce the biggest gains. To be a successful flipper, you should always be prepared for unforeseen challenges, budget increases, time-inducing mistakes, a longer renovation timeline, and even issues selling on the market. The process of flipping houses usually requires extensive real estate experience, marketing, and renovation which makes it a better option for experienced investors looking to diversify. Another option is to find a partner who has experience in real estate. You could have the capital or time to contribute and find a contractor who is good at estimating expenses or managing the project.
3. Real Estate Investment Club (REIC)
REIC is ideal for people who want an opportunity to leverage their relationships to build wealth through real estate investments with friends, colleagues, associates, and family and is targeted to also serve people across all income brackets; from low to high-income earners. This can be done by acquiring property together or forming a syndicate to sponsor viable real estate projects. Leveraging on such relationships will give you safety in decision-making and the opportunity to approach projects or property that hitherto seems out of reach.
As an investor with REIC, you are in control, with all transactions decentralized and run digitally leveraging blockchain technology. Even more importantly, investors will be able to liquidate their stakes through a tokenized system. What this means is that, instead of waiting for your investment to reach full maturity, you can sell and transfer your stake to another user at an agreed-upon price. If this sounds like something you or someone you know might be interested in, click HERE for more details.
4. Property Development
Property development is a very capital-intensive investment. In this case, properties are acquired in choice locations, and then redeveloped into other properties or structures such as office spaces, apartment buildings, commercial structures, etc., and then sold at a really high-profit margin. It is important to note that location plays a key role when considering property development.
There are many ways to approach real estate investment even beyond the above examples. As with any investment, there are a lot of prospects in the real estate sector, however, you should ensure you take careful steps and decisions, carry out extensive research, and weigh out the costs and benefits before taking any action. Want to take the hassle of this off your shoulders? Then let us help you find the best way for you to enter the real estate market. Send us an email and let’s get you started!