Most people have at one time had a landlord. Chances are you probably didn’t think it was a very glamorous job. Quite a few people fail to realize that it can be pretty lucrative when real estate gets done right. There are several different ways you can get started in real estate investing.
REITs or Real Estate Investment Trusts
If you are not yet ready to be the next Stefan Soloviev, these trusts are, in some ways, the best of both worlds. They allow investors to get into the real estate game without owning any physical real estate.
This type of real estate investment often gets compared to owning mutual funds. Trusts like these own properties such as commercial office buildings, apartments, hotels, and retail spaces.
Trusts like these often pay high dividends, making them an excellent investment for retirement. If you are not someone that needs that type of regular income, you can have your dividends automatically reinvested into the trust.
Online Investment Platforms
There are quite a few online platforms that will connect potential investors with real estate developers looking for financing. When you invest in this type of real estate transaction, you most likely want some kind of monthly or quarterly distribution in exchange for the risk you take.
One important thing to remember about an investment like this is that it is not overly liquid because it is real estate. What this means for investors is that these investments can be harder to unload as you would a stock or a bond.
Make the Jump Into Rental Properties
One of the best ways you can get into the rental market is by finding a place where you can also live. So if you buy a unit with three or four bedrooms, you can live in one and then rent the rest out.
When you do this, you find a place to live for yourself, plus the income can cover costs like utilities, insurance, and taxes. It stands to reason that you want to make sure that the rental income you can generate will exceed whatever your costs will be owning the property.
There are plenty of investment opportunities in the world of real estate that do not require a significant amount of money, time, or knowledge. The critical thing for beginners is to make sure you do plenty of homework and constantly assess your progress in your investments.
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