Buying a home is frequently the first step most people take to invest in real estate. However, there are several ways to get into real estate investing. Based on your budget and risk tolerance, you can work with a real estate agent to invest in rental properties, renovate and sell properties or invest in a real estate trust.
Investing in rental properties can be as simple as sharing your space with renters. If you have a house or condo that is bigger than you need, taking on roommates can reimburse you for your mortgage, utilities and other expenses. If you negotiate the right rates, you could even make a profit. Getting a real estate agent involved to help you find the right property and set a price for the rental can help ensure you get a good return on your investment.
If you are a fan of HGTV, you are familiar with the term. Having a knowledgable team of a realtor, home inspector, appraiser and contractor is the key to getting a suitable property at a price that will allow you to invest in improvements while keeping to a budget that will enable you to make a profit when you sell. The more gains you realize, the more you can reinvest in other properties.
Real estate investment trusts are vehicles that allow you to put money into real estate without having to purchase or maintain a physical property. REITs are companies that buy and sell everything from apartment buildings to office complexes to shopping malls. They can pay significant dividends, but they can also be complex to understand. New investors should work with publicly-traded REITs through investment brokers initially to avoid the higher risk that can come with private trusts.
Having a trusted team is vital when looking for an investment property. The A Team of The Associate Realty Group can assist with all your real estate investing needs. Email Adriana or Anthony directly or give them a call today at 909-821-1410.