Having any excess money around is only going to produce opportunity costs. Money is best for making more money. Having that steady passive inflow increases your quality of life, offers financial stability and lets you focus on other, more important aspects of your life. With so many investment opportunities available, it can get tricky to choose the right one. Real estate provides the most outcome considering the leverage and if you aim for long term solutions, it doesn’t get any better. The best time to start is now, so let’s get going!
1. Craigslist, Airbnb, etc.
If you already own real estate, why leave it laying around? Any rent is better than none. Listing it for the public to see can get you making profits out of it in no time. Airbnb, VRBO, Craigslist or HomeAway are all good choices and don’t be shy to post it on more places than one. Casting a wider net produces more results. The downside to this, as we want to be objective, is the constant upkeep. Cleaning, renovating and keeping the place up to standard and appealing can put a drain on your time and energy. Screening tenants, having to deal with complaints and keeping up with the reviews all account for your bottom line.
2. Flipping
Flipping a house is much easier than you think. All it takes is knowing the local market, having some contacts, and a bit of renovating so that you provide what’s requested at the moment and at the right time. You may be thinking that we are pulling a fast one on you, but there is a way to gain all of this without prior experience. Hiring dedicated and professional property investment agents can make all the difference for your portfolio. For a small fee, considering the overall gain, you don’t have to be an expert, you simply need to have a property and the desire to do something with it. There are countless legal and technical pitfalls that newcomers often fall into and you can skip all of that with a trusty ally at your side.
3. REIT
Let’s say that you don’t have any physical real estate in your possession, but still want to get into the action of that specific market. Buying one is a good way to start, with the only downside being that you need substantial upstart capital. Then you can invest in other people’s real estate and get part of their profit as compensation. This is the easiest way to explain REITs. You invest your money, into other people’s real estate, who then rent them out and do all of the jobs for you. In the end, you get a dividend from that based on your investment. This is a form of passive income in real estate that’s easiest for newcomers when they wish to break into the real estate market.
4. Lease then buy
One more option that’s more of a long-term investment for you is to lease any real estate and then wait. Yes, you are paying a monthly rent but you can always find other tenants that are looking for a home and make a deal that benefits you. The best part of this is that the housing market is sometimes volatile and when you are leasing with the chance to buy, you can wait for that perfect timing and then buy the property at a reduced price. Your monthly rents plus market deprivation can make for a hefty profit sum.
Starting any new journey always seems daunting at first. With plenty of new ground and info to cover, many get discouraged before they even try. That’s why the first step is the most important one to make. We wish you all the best in your future endeavours.