If you have been looking for ways to make extra money or even a side business, real estate investing may be the way to go. With an ever-changing market full of new opportunities, there are many different ways to invest in real estate. Some people prefer buying houses and renting them out while others find helping fix up properties is more their cup of tea.
If you are interested in real estate investing, but not sure where to start, here are some ideas to help guide your decision:
Buying a house or condo
If you are thinking of just buying a home, the possibilities are endless. You can purchase a primary residence or you could even use mortgages to purchase multiple homes at once for rentals. Even if you are just looking to buy your first home in this buyer’s market, it is smart to look into down payment assistance loans in order to get more bang for your buck.
Buying an apartment building
If you are looking for ways to invest in real estate that involves purchasing larger properties, you should investigate buying an apartment building. These deals can be lucrative since the initial costs are generally high, though the return on your investments will make it more than worth it in the long run. You can either purchase a building full of renters or go in on a property with an owner and manage the building together. If you are looking to make this kind of investment, be sure to calculate how much each unit could produce in rent before buying the building, as it will make your life easier when trying to find renters.
Much like buying an apartment building, condo development is a perfect idea for anyone who has the know-how and resources to pull it off. It can be difficult to get started in this business since you will need to find someone willing to sell their land to you at an affordable price, but if you want the money making opportunities that exist when selling condos, this is definitely the route to take.
Investing in commercial property
If you do not mind putting a lot of time and effort into your investment opportunities, commercial properties could be what you are after. With both residential and retail properties available for purchase, these deals will make it possible for you to make a decent profit in a short amount of time.
Fixing up properties
Some people enjoy the process of buying homes and fixing them up themselves to increase their value before selling them for a nice profit. While this is definitely a more time consuming option, it is also a great way to get into real estate investing without having a lot of cash on hand right from the start. If you meet all the qualifications and the house is in the condition needed to be sold as a “fixer-upper,” you can look into getting a rehab loan. This will allow you to buy the house, fix it up and possibly live there before selling it for a nice profit.
Investing in income properties
This is another great idea for anyone who wants to get into real estate investing without breaking the bank. By fixing up properties and then renting them out, you can make a pretty decent return on your investment within a few years, depending on how much work goes into each deal. Since these kinds of investments are not as labor intensive, it is a great opportunity to get started right away.
Connecting with a real estate agent
With all of the choices out there when it comes to real estate investing, it can be overwhelming if you’re a beginner. Connecting with a local real estate agent can be a great first step for exploring the various investment opportunities in your area. No matter what you decide, be sure to carefully consider all of your options first and weigh the pros and cons.