You want to invest in real estate in 2020, but you aren’t sure how to get started. The following are four ways to get started; you have to decide which one will work best.
Get Into REITs
An interesting way to invest in real estate is to do it with REITs or real estate investment trusts. When you think of real estate investing, most people think about investing in physical property, but that’s not the only way to get into this industry. Think of these real estate investment trusts as mutual funds.
You’re investing in companies that own commercial property. Sometimes, these companies own office buildings or hotels. You’ll have to pay close attention to these businesses to make sure they’re worth investing in, and you get to diversify your portfolio quickly.
Adapt To The Software
The reality is today’s real estate investors need to invest in the new software available. You have access to tools like real estate wholesaling software, where you’ll have access to information on many properties.
The right software can even help you explore areas by avoiding areas you’ve already explored. According to DealMachine, you can use this type of software or app to help you do everything, from “looking up owner name and addresses” to initiating targeted direct mail campaigning. Don’t get left behind. This type of technology is fueling other investors as well.
Try Rental Property
Another good road to take toward real estate investing in 2020 is to invest in rental property. If this is your first time investing and starting from scratch, you could end up living in one of the units and renting out the rest. It’s a pretty sweet deal that’ll help you get ready for your next big investment.
Remember that you’ll have to worry about dealing with maintenance if you are renting out your property. You could work with a property manager who can help you figure some of this out, especially as your real estate investment business starts to grow.
Flip Distressed Or Pretty
If you want to acquire a property but do not deal with many repairs, consider flipping the property. The amount of work you put into a property before you flip is up to you. The goal here is to acquire property that is in bad shape. You normally get a pretty good deal on this property.
You can turn around and sell it at a higher price than you purchased it, or you can try to work on it to attract more buyers and price it higher. It’s a hands-on approach, but it can be quite fun to hunt that next diamond in the rough, so if you have that kind of spirit, this might be a good fit for you.
There are a few things that you must figure out before starting to flip houses. First, you must determine where you will be sourcing your deals from. It is also important to get a good feel for your local real estate market so that you know what is a good deal and what is not. You will also need to get your financing lined up so you will be ready to purchase a house when you find the right one. And last but not least, you will need to begin building a team of contractors unless you plan to do all of the repairs yourself. When these steps are completed successfully, you will be well on your way to becoming a successful house flipper!
These are just some ways you can invest in real estate, but there are more ways to rent out a room through home-sharing platforms online, for example. Hopefully, one of these interests you, or maybe a few of them do, and that’s okay, too.