One of the secrets to growing your wealth is to invest in real estate. Investing in different types of properties can allow you to earn a quick profit and diversify your portfolio. When you want to become more successful with your investments, there are a few different ways you should be putting your money into real estate.
1. Join Crowdfunded Real Estate
Crowdfunded real estate is less risky and allows you to invest with other people in both commercial and residential properties. The option is ideal for those who are investing for the first time and can allow you to invest as little as $1,000. Several different crowdfunding websites are available that are reputable and will simplify the process.
2. Rent Out Your Home
An easy and efficient way of earning more money is to rent out a room or a basement in your home throughout the year. You can also consider building a backhouse on your property with a kitchen to charge more for rent. Renting out a portion of your home will allow you to monitor your tenant and collect rent quickly.
3. Flipping Homes
Flipping homes is a risk that should be taken when investing in real estate when you want to earn a profit on a home in a short period. Look for bargain homes that need minor cosmetic repairs to avoid investing more money into the property. You'll need to purchase homes that are under market value and remodel the kitchen, bathrooms, and flooring to create a space that appeals to buyers. You'll then need to hire a real estate agent from an agency like RE/MAX Real Estate Group to sell the property.
4. Purchase a Real Estate Property
Purchase a property that has a property tax, a mortgage payment, and insurance that is lower than the rent. Buy a house in an area that has high rent and put down a larger down payment to reduce what you spend to own it each month.
5. Real Estate Investment Trusts
Real Estate Investment Trusts allow you to invest in real estate without needing to be actively involved. Set up a REIT fund where you can invest in stocks, mutual bonds, and stocks in the real estate industry.
By making the right real estate investments, you can increase your earnings and wealth over time. Your investments will begin to pay off and can secure your financial future.
About the Author: Lizzie Weakley is a freelance writer from Columbus, Ohio. She went to college at The Ohio State University where she studied communications. In her free time, she enjoys the outdoors and long walks in the park with her 3-year-old husky Snowball. The information in this article is credited to RE/MAX Real Estate Group.