You may have long considered becoming a real estate investor. Maybe you should start investing in real estate but don’t know where to begin. You’ve probably read plenty of missions from gurus trying to sell you on why this or that real estate investment in USA is the one for you. Sorting through it all and filtering the overwhelming information can be challenging. But you are not on your own here. Here are some of the best ways to start in real estate this 2024.
1. Go Online With Real Estate Investing Platforms
If you’re looking to start investing in real estate but don’t want to deal with all the hassle of finding a property and managing it on your own, then an online real estate investing platform may be the perfect solution.
Online real estate investing platforms allow you to invest in properties without having to go through the arduous process of finding and managing them yourself. You simply deposit money into your account at the platform, and they manage to find you suitable investments based on your risk tolerance and investment goals.
Benefits of investing in real estate through online platforms:
- Convenient. You no longer need to spend hours researching properties or dealing with contractors if something goes wrong with one of your investments. Instead, you can let the platform handle everything for you so that all you have to do is sit back and wait for returns on your investment.
- Modern. Investing in real estate has never been easier than it is today thanks to technology-driven innovations such as online platforms. Gone are the days when investors had to negotiate with sellers over phone calls or emails; now all you have to do is log into your account and click a button or two on investment websites such as holdfolio.com.
2. Purchasing Real Estate Investment Trusts (REITs)
REITs are not investments in companies that own real estate. When you own shares in a REIT, you’re buying into an entire portfolio of properties — not just one building or one set of houses. This means that if one property loses value, it may be offset by other investments that do well. This may be the best real estate investing for conservative investors.
The appeal of REITs is that they offer investors the opportunity to earn dividends over time without having to worry about management responsibilities like repairs and maintenance costs, tenant screening, and eviction notices.
However, unlike mutual funds, which are usually bought and sold through brokerages or fund supermarkets, you have to purchase shares directly from the individual companies that offer them. Most brokerages don’t allow you to trade shares in nonpublic companies like this; instead, they’ll sell you shares in exchange-traded funds that track an index.
3. Rent Out a Property
Renting out your property may not be a modern way to invest in real estate, but it’s one of the safest ways to start. However, it’s not always easy to find tenants and get the best deal from them. Here are some tips for making the most out of rental properties when starting out in real estate investing:
Find a good location. If you plan on renting out a room in your house, make sure it’s close enough to where you work so you can check in on things regularly. If you’re renting out a whole house or apartment, search for a location near public transit so your tenants don’t have to spend too much money on gas each month.
Get a tenant screening company if possible. This will help you avoid any problems with tenants who aren’t responsible for their rent payments or who cause damage to your property while they’re living there. If they can’t afford one on their own, consider asking them for a larger security deposit instead so that you can cover any repairs or replacement costs when they move out of the property.
Ask for references from past landlords before accepting someone as a tenant. A history of paying rent on time and keeping their home clean (or at least not trashing it) will give you confidence that this might be a good deal.
4. Make a Turn for Flipping Investment Properties
House flipping is a term used to describe the process of buying, renovating, and selling a property within a short period. In some cases, the process can be completed in as little as two months.
While house flipping can be an exciting way to make money, it’s not without its risks. Here are some things to consider before deciding whether this is an investment strategy that’s right for you:
- Do your research. Before you decide to get into flipping houses, be sure to do plenty of research. Look at successful flips in your area and see what they cost and how long they took. You’ll also need to take into account how much time and money it takes up front.
- Look for properties with good profit potential. When it comes to locating great flips, some places will have more competition than others. Look for locations with few flippers so you can have an advantage over them when it comes time to sell the property at a higher price than the market would ordinarily bear for similar properties in that area.
- Get an inspection from a professional. Consider hiring a contractor or architect/interior designer before buying a flip property so that they can give you feedback on whether or not it would be worth investing in or not.
Takeaway
While it’s hardly a get-rich-quick scheme, real estate can be immensely profitable for the right kind of investor. And as online-based platforms make it easier for individuals to invest in real estate, we could soon see new investors joining the realty business by creating a portfolio of properties. The best way to start in real estate is to find what works for you and then keep working at it. Like any other business endeavor, starting out in the modern way to invest in real estate is a journey.
