If you appreciate architecture and home renovation, you might enjoy investing in real estate as an income source or hobby. While you do need money to get started, real estate is a lucrative field that is easy to get into. Whether or not you have much experience or knowledge about this lucrative field, you can quickly get up to speed and begin making money by following a few basic tips like these.
Here are 4 easy ways to start investing in real estate.
Work with a Trusted Realtor
Look for an expert who has been working in real estate for some time. Check their sales record to see if they are listing and selling the kind of properties you are interested in. A realtor can answer questions about renovations, permits, and contractors as well as guide you to smart deals in your areas of choice as well as provide local price comparisons to help you buy and sell properties efficiently. So work with a trustworthy realtor to get your real estate investments started off on the right path.
Buy a Stable Rental Property
If you decide to buy a home or business property to rent out, look for one that has long-term rental or leasing history. Try to determine the caliber of renters that may be attracted to the locale or the type of unit you are renting. Look up the crime statistics for the area. You may be able to check online county tax records as to whether a property you are interested in purchasing has been involved in criminal activity or used as a meth lab. Look for properties that are structurally sound and have not experienced a recent disaster, such as flooding or an earthquake, which may scare prospective renters away.
Renovate a Low-Cost Home
Remodeling a home can turn a profit when you sell it after a moderate amount of work has been done inexpensively. Avoid buying expensive homes in nice areas for flipping purposes, as there will likely be little profit to be made if the home is already in good condition and selling at a fair price. Instead, find homes that need renovations that you can manage or for which you can hire affordable contractors. Take into account the costs of utilities, taxes, and insurance during the renovation period as well as lawn upkeep or snow removal in assessing the profit margin. Cosmetic improvements don’t have to be expensive, and they can quickly improve a house’s appearance and functionality to attract eager buyers.
Invest in a Real Estate Investment Group
If you are ready to invest in real estate without taking a hands-on rental or renovation approach, you may want to invest in a real estate investment group. These groups operate like a mutual fund by investing members’ funds in various housing projects, including group homes, condos, apartment complexes, and new home developments. By investing in these groups, you can put your money to work for you without having to do as much legwork or renovation work yourself.
Invest in options like these for a potentially lucrative return on your investment. Real estate offers a popular investment opportunity that you can get involved in with little prior experience. By following these 4 tips, you can get started on a lucrative real estate career or side-gig and make some decent money.
By Brooke Chaplan
who is a freelance writer and blogger. She lives and works out of her home and residing in Los Lunas, New Mexico. She loves outdoors activities and spends most of her time biking, hiking and gardening. She recommends looking into real estate opportunities near you.