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5 ways to start investing in Real Estate

You might have had a landlord at some point in your life. Not many people look at their landlords can want to live in his/her shoes. You see your land owners always taking complaints, working with the maintenance team and handling pest issues.
But what if we tell you that real estate can be a very lucrative business? If done right. You can manage your way past such issues and embark upon a journey to success through making sound investments. The problem is that many people do not know how to invest in real estate. We have come up with a list of ways you can boast your portfolio by investing in real estate.

  1. REITs

REITs are often compared to mutual funds. These are investment funds pay high dividends and are considered good for people who are retiring. If, as an investor, you don’t want much of cash flow, you can reinvest the dividends and grow your investment further. REITs are bonds possessed by companies who have acquired hotels, malls, retail spaces and office buildings.

  1. Online platform on real estate

In the modern day, there are many online platforms which offer real estate buying and selling services. These sites offer a platform to real estate developers, and link them up with investors. Similarly, you can visit a crowd-funding site and be an investor with other people at the same time. One hurdle with using these platforms is that they require a pre-screening and are only open to accredited investors. Being an online market they are always prone to fraud. That’s the reason why such platforms need only accredited investors. According to the Securities and Exchange Commission, people earning above $200,000 in both the previous years or having $1 million net worth can join these platforms.

  1. Invest in Rental properties:

Buying rental properties can be an amazing experience. If not handled right, these can be a disaster as well. Through a rental property, you can gain four financial benefits:

  • Cash-flow
  • Appreciation
  • Tax saving
  • depreciation

By buying a rental real estate you can reach your highest potential as an investor. In provides you with a constant stream of income from your tenants. For all the time you keep the property, you are reverted in terms of appreciation of the land value. You can save tax by using depreciation and bifurcation.

  1. House flipping

You might have heard of house flipping. This means that you buy a property, make more changes or improve certain parts and resell it at a higher price. If you are new to this, join hands with a partner and get going with this brilliant idea. According to many gurus, house flipping can be tricky as it involves exact estimate of what the repairs are going to cost. If you are not able to predict your repair expenses right, you cannot earn profit on the selling side of things. Other risks involving house flipping are that, the longer you hold the property, the less money you make because of the mortgage you are paying. Sell your house as soon as you have fixed it up.

  1. Renting out a portion of your real estate

You can start being an investor by simply renting out a room at your place. You can use the Airbnb site and get going as a landowner. Remember to keep your local laws is check before you take such a step. You can either look for a long term client to your portion or temporary tenants.

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