Real estate investing is one of the best ways to create wealth and build long-term financial security. It’s a tried and true investment strategy that can provide you with a steady income stream for years to come.
But investing in real estate can seem like a daunting task—especially if you don’t have a lot of money to get started.
That’s where this guide comes in. It will teach you how to get started in real estate investing, even if you don’t have much money saved up.
Read on to learn new ways to begin investing in real estate.
Buy REITs
REITs are short for “real estate investment trusts.” They’re companies that own, operate, or finance income-producing real estate.
You can buy shares of REITs just like you would any other stock. And the best part is, you don’t need a lot of money to do it. You can start investing in REITs with just a few hundred dollars.
There are two main types of REITs: Equity REITs and mortgage REITs.
Equity REITs invest in properties, while mortgage REITs lend money to property owners.
Is investing in REITs a wise decision? The answer is a resounding yes.
REITs have outperformed the stock market for the past decade. They’re also one of the most tax-efficient investments out there.
However, the REIT you choose will significantly impact your investment success. That’s why it’s essential to do your research before investing in any REIT.
Beginners need to invest in publicly-traded REITs that trade on major exchanges. These REITs tend to be the most liquid and have the lowest fees.
There are many different types of REITs, so find one that meets your investment goals. For example, if you’re looking to have a high income, you might want to invest in a REIT that focuses on office buildings or apartments.
If you’re looking for long-term growth, you might want to invest in a REIT that invests in warehouses or storage units.
There’s a REIT out there for you, no matter your investment goals.
Real Estate Crowdfunding
Real estate crowdfunding is a new way to invest in real estate. It’s an alternative to traditional investing, such as investing in REITs or purchasing a property directly.
With real estate crowdfunding, you can pool your money with other investors and invest in a property. You can also invest in a portfolio of properties, known as a “fund.”
Real estate crowdfunding has many benefits. For one, it’s a great way to get started in real estate investing without a lot of money.
You can start investing with as little as $500. And since you’re investing with other people, you can spread the risk around and minimize your losses if the investment doesn’t go as planned.
Another benefit of real estate crowdfunding is that it’s a hands-off investing strategy. Once you’ve invested your money, the platform will take care of the rest.
You don’t have to worry about finding tenants or dealing with repairs. That’s all taken care of by the platform.
Real estate crowdfunding is a great way to invest without a lot of money or experience. If you’re looking for a hands-off investing strategy, it might be the right choice.
Fix and Flips
Fix and flips is a real estate investing strategy where you purchase a property, renovate it, and then sell it for a profit.
This strategy can be very lucrative, but it’s also risky. It’s important to have a good team before you start fixing and flipping properties.
You need to have a real estate agent who knows the market well and a contractor who can do quality work at a reasonable price.
It’s also important to have realistic expectations when fixing and flipping properties. Don’t expect to make a fortune on every flip. A successful flip typically results in a profit of 20-30%.
Airbnb
Airbnb is a short-term rental platform that allows people to rent out their homes to guests.
This approach is a great way to make money if you live in a popular tourist destination. You can also make good money if you live in a city with many business travelers.
To get started, create a listing for your home on Airbnb. Include photos and information about your home and location.
You’ll also need to set prices and availability. Once your listing is live, guests will be able to book their stay.
You can use Airbnb as an investing strategy by purchasing a property specifically to rent it out on Airbnb.
This strategy can be profitable, but do your research before you invest. Make sure you understand the Airbnb market in your city and what guests are looking for.
BRRRR Strategy
The BRRRR strategy is a real estate investing strategy that allows you to buy, renovate, rent, and refinance a property.
This strategy is great for people who want to build equity quickly. It’s also a good choice if you’re looking for a hands-off investing strategy.
To get started with the BRRRR strategy, find a property that needs some work. Once you’ve found a property, make an offer and purchase the property.
Next, renovate the property and bring it up to code. Once the renovations are complete, find tenants and start collecting rent.
After 12 months, you can then refinance the property and pull out your equity. You can then use that equity to purchase another property and repeat the process.
Choose a Location With Low Home Prices
As a real estate investor, one of the most critical decisions is choosing where to invest.
Choose a location with low home prices. This will allow you to get more bang for your buck and increase your chances of making a profit.
One location that fits this criterion is Memphis, Tennessee. Memphis has a median home price of $142,725, much lower than the national average.
Interested in knowing about the Memphis real estate market? Read more here and get your dream property.
How to Get Started in Real Estate Investing
There are many different ways to get started in real estate investing. These are just a few of the most popular options. Do your research and choose the approach that best suits your needs.
If you’re interested in learning more about how to get started in real estate investing, read our other articles posted on the website.
