Investing in real estate is one of the best ways to create a passive income.
If you know how to navigate the property market, you can get rid of debt, improve your financial situation and even get rich!
However, it only works if you follow the right steps. That’s why you have to do your research first. In this post, we’ll give you a quick real estate 101 with three essential facts about property investment.
Get Started with Our Real Estate 101
Learn all about investing in real estate with this quick introduction.
1. There Are Several Types of Real Estate Investment
Real estate isn’t just about flipping houses or renting them out to tenants. There are several types of properties you can invest in, and each one comes with its own advantages and disadvantages.
Here are just a few of them:
- Residential – Purchasing properties like houses, apartments and vacation homes, then renting them out to tenants, usually on 12-month leases.
- Commercial – Purchasing office buildings, restaurants or other properties for commercial use, then renting them out to businesses. These agreements are usually more long-term than residential leases.
- Industrial – Investing in warehouses, factory buildings or storage units and leasing them to companies for temporary use.
- Retail – Investing in shopping malls, strip malls, store buildings or shophouses and leasing them to business owners. In some cases, landlords take a percentage of the profits.
- Multi-Use – Any type of real estate that combines two or more of the above, such as a retail park with an office building, or an apartment building with a community mall.
- Flipping – Buying a low-priced property, renovating it and selling it quickly for a high return.
Think about which type of property investment would suit you before getting started.
2. You Need a Strategy
You can’t just jump into real estate blindly. First, you need to devise a plan.
Think about what type of property you’re investing in, how you’re going to finance it, and what your exit strategy will be if things don’t go to plan.
If you don’t know where to start, don’t worry. For some extra support, it’s best to get a mentor to help you. An expert in the field like Bonnie Roberts Realty can give you some advice and guide you through the process.
3. It’s Not a Quick Fix
Investing in real estate is often lauded as a get-rich-quick scheme, but in reality, it’s a long-term project that takes hard work and dedication.
There are a lot of financial risks, and it’s essential that you take the time to do your research, make careful decisions, and build relationships in the industry.
Make an Investment
With this real estate 101 guide, you’re ready to take the first steps in your new investment journey.
If you’re looking to make money, real estate isn’t the only thing you should get involved in. You should also consider investing in the stock market, too. Even without a large amount of capital, you can get a high return if you do it right.
To find out how, read our post on how to invest in stocks without a lot of money.