Five Different Ways To Invest In Real Estate

If you’re looking to invest your money and diversify your portfolio in new ways, real estate can offer you several avenues for doing so. Real estate can help you increase your assets and provide additional income streams. The choice to invest in the field of real estate can be rather lucrative if done right.

How to invest in real estate?

One of the hardest parts of breaking into real estate investment can be figuring out the best place to begin. With a defined strategy and clear vision you can embark on your own path to success. Below are five key ways to invest in real estate and diversify your portfolio.

Rent Rooms

A great starting point to becoming a successful real estate investor is by taking advantage of the space you already have. Whether you’re subdividing your home or renting out a spare bedroom, there are several paths to bring in steady income. There’s also the prospect of renting out your living space using app-based services such as AirBnB.

This avenue gives the investor an opportunity to try out being a landlord without a huge upfront monetary commitment. Renting out rooms through a third party booking service such as AirBnB offers the protection of a basic level of screening through their registration and ratings. It also offers a host guarantee that helps cover any basic damage that may occur.

Rent Properties

One of the more tried-and-true forms of real estate investment is becoming a landlord. Buying and renting out properties or space to tenants is a practice as old as time. Whether you’re buying out commercial space and signing long-term leases to corporate tenants or renting out apartments to families, being a landlord can be quite a lucrative investment opportunity.

Of course this method has drawbacks of its own. This form of investment requires significant cash upfront to purchase or mortgage the property. There are also costs associated with rehabilitating and maintaining it. There are also risks associated with dealing with tenants and their potential impact on the property. Until you have the revenue to develop or hire a property management company to deal with some of these headaches, it’s important to remain mindful of the risks.

Flip Houses

Another well-tested method for growing your wealth is fixing up and reselling homes. Popularized in reality television shows over the last couple of decades, the idea of purchasing an undervalued home and renovating it as economically as you can isn’t always as glamorous as those shows make it out to be.

It’s important to have a solid understanding of what it takes to successfully rehabilitate a home or to find a partner that does. You’re looking to invest in a property that is undervalued and in need of only minor cosmetic upgrades in order to raise the resale value to potentially earn a profit. Not paying attention to the market overall or knowing how to find potential structural issues can quickly take a property from a prospective goldmine to a complete bust.

Crowdfunding

The internet has served as a monumental platform that has shaped the core of our economies and society itself in remarkable ways. From automated banking to the rise of cryptocurrency, the internet has changed the core foundations of markets as we once knew them. With the advent of crowdfunding investment platforms, the ability to begin to invest in real estate has never been easier.

The SEC has traditionally regulated crowdsourced investment platforms similarly to syndication. This means that you had to be an accredited investor with a decent amount of capital to invest. Thanks to recent changes in regulation, non-accredited investors can begin investing with as little as $500 thanks to platforms such as Fundrise and RealtyMogul. These sites prescreen and only accept a minimal amount of projects proposed to help ensure the highest returns on your investment.

Real Estate Investment Trusts

Real Estate Investment Trusts, commonly known as REITs, give investors an opportunity to break into the market without needing to be as involved as other methods. REITs are public or private companies that own a portfolio of real estate holdings. They tend to pay out high dividends and make a great form of passive income.

REITs can come in a variety of forms depending on the company you’re investing in. Publicly traded REITs tend to trade on exchanges like stocks, while private non-traded REITs may be harder to sell. The type of REIT you choose to invest in can help determine your risk, so it’s important for you to carefully research where you choose to invest your money.

An evolving and growing market allows you to get into real estate investing easier than ever. From renting out the spare bedroom in your condo to investing in real estate investment trusts that have vast portfolios, there are more chances for you to grow your wealth now more than ever. Pay attention to new trends in the market and for any new opportunities that may arise.

 

Please feel free to visit Colorado REIA for more tips on real estate investment.

 

Five Traits of Successful Real Estate Investors

Key traits of successful real estate investors and tips for successful real estate investment

There are several key ways to build your wealth and diversify your portfolio through real estate investment. These include property management and wholesaling. Thanks to a multitude of methods for achieving success and prosperity, real estate investors have more opportunities than ever catering to a wide array of skill sets and experience.

What traits do real estate investors have?

Whether you’re new to real estate investment or a seasoned real estate Investor, there’s always opportunity in the market for those who are willing to find it. While there are colleges and technical schools that offer specialized programs for real estate, secondary education isn’t always needed for success in the field.

By developing and honing these key traits you can help solidify your path to becoming a successful investor.

Plan Properly

You don’t want to jump into real estate investment blindly. This is a field that requires a fundamental understanding of the market and the dynamics that lay at its foundation. While secondary education and experience aren’t always needed, they certainly wouldn’t hurt either. It’s important to constantly expand your knowledge and understanding of the market.

Having well-defined goals is critical for the apprentice investor. Working towards a goal prevents you from stretching yourself too thin and can help you maximize your profits. You need to treat real estate investment as you would a business, complete with clear short and long term milestones you’re looking to achieve.

Be Passionate

A key component of getting into any form of investment is to be passionate about what you’re investing in. Successful investors simply live for investment. They never stop learning, and they understand there is plenty they don’t know or fully comprehend which allows them growth and advancement.

Successful real estate investors are simply more committed than most. They’re devoted to maximizing their returns and scouting out new opportunities to expand their wealth. It’s important for you to constantly expand your understanding of the market and how you approach it as the market continues to expand and evolve.

Never Quit

Determination and perseverance are key traits accomplished investors have. It’s just as easy to lose faith when there are delays on a project as it is to feel elated after closing a big deal. You can’t quit when your prospects aren’t exactly looking the brightest.

Investment is a journey like any other in life. It’s important to bear in mind that the journey is a marathon rather than a sprint, and you may occasionally stumble along the way. There are plenty of situations in life where things beyond our control can happen. Therefore, it’s important for you to stay resolute in the face of any adversity that may come your way.

Think Logically

Real estate is a unique form of investment in that it can take a fair degree of intuition to help you be successful in the long-term. Unfortunately for some, this can lead to investing in the potential of a property rather than the property itself. It’s critical to pay attention to the changing conditions of the market so you can better forecast evolving market trends.

While it is important to think outside the box when it comes to investing in a property rather than solely playing it by the numbers, it’s just as important to not invest based on arbitrary ideas like your personal attachment to a property or neighborhood. Remain disciplined and focused as you choose where to invest your money.

Think Outside The Box

As stated before there is a fair degree of importance in applying some unconventional thinking to your approach. You need to be nimble and responsive to changes in the market and expanding your understanding of it. There will be times where you need to carefully weigh potential risks against the potential reward and opportunity afforded.

There may be instances such as when a property will need extensive rehabilitation to bring it back up to code, but the location and zoning can bring a substantial ROI if the project is followed through to completion. While this prospect may seem daunting to the undisciplined, the seasoned investor sees these types of challenges as opportunities for growth.


While there are many paths for you to join the ranks of other successful real estate investors, the road you choose is up to you. There are snake-oil sellers peddling real estate investment as an easy path to wealth, but it’s important to remember that it’s ultimately a business that requires dedication and focus to grow like any other. Never forget the skill, dedication, and effort needed to achieve success in the long-term.

 

Learn more about real estate tactics by visiting Colorado REIA

Real Estate Investors: Why Face to Face Marketing is Important

If you are a company with a big budget for marketing, you could just invest in big advertising campaigns to boost your company’s sales. However, if your company is just starting up and is still small, you wouldn’t be able to do this. You need to figure out where you should put your marketing focus on.

There is the mistaken belief that simply putting up ads for their company everywhere will help bring in loyal clients. This is often not true.

Let’s start with a dating analogy. You are a guy, looking for someone. You meet a girl at this party through a friend. You’re introduced and you’ve been told that the girl is great, has a good job and personality and more. Won’t you feel reassured that the girl you met is supposed to be great? Compared to meeting some random stranger without someone else’s perspective, you would prefer to meet someone your friend already knows.

Trust is a big thing and it’s built as you get to know someone. The same is true in advertising, as overloading people would be useless for your business. You need to build trust to get clients.

You could invest in Facebook Ads or Google AdWords. However, meeting with the people in your community will bring value to your business as you build relationships with them. These people might one day be a client.

What’s important is learning how to make someone into a client through trust in your services. How do you know if someone will become a client?  How will you earn people’s trust and convince them to use your services?

Building Trust as Real Estate Investors

This is where face-to-face marketing comes in as the most efficient way to generate trust in customers. Marketing companies all over the world know that people who have already experienced their product will be more likely to buy it again. For some brands and companies, product samples help increase their sales by 2,000 percent. However, real estate is not a product, it’s a service. How can people sample a service? Below are some examples.

  • Services like a gym give out free boot camp and training sessions. People who try it out and enjoy it will be more likely to purchase full memberships.
  • A software company gives out trial versions of their products as samples. If people like it, then they’ll buy a subscription for it.

For real estate agents, you are the service. The homeowners as the prospective clients get to talk to agents. They get information from and network with others through their agent. Homeowners achieve their goals together with their agent.

Helpful tips for Face-to-Face Marketing

As previously stated, face to face communication is great. Talking to people face to face allows you to know their unspoken reactions, through body language, the tone of voice, and facial expressions. Here are tips for when you have face-to-face conversations with your prospective clients:

  • When approaching your prospect’s house, walk up with confidence
  • Ring the doorbell or knock on the door 3 times and back away to give them their personal space. Wait for a couple seconds for the homeowner to get to the door before you knock again.
  • Have a friendly smile on your face so that they won’t be suspicious about your intentions
  • Be alert, listen for movement inside the house and keep your eyes on the window after knocking
  • When the door opens, assume that the person who answered is the person you are looking for
  • Talk about buying TIME only
  • Stay confident
  • Don’t wear something too formal. Don’t wear suits and ties. And no red clothing of any kind because red means stop. No hats or sunglasses because these cover the eyes.
  • Polo shirts, jeans or slacks are okay. Wear comfortable footwear. Don’t wear heels, for ladies. No trench coats either.
  • Don’t go to houses looking shabby, be neat.

To build trust with your prospective clients, be open to “sample” your service. Build your relationships well and provide valuable service without asking for anything in return. This will lay the foundation of trust and comfort for those prospective clients.

This is why face-to-face marketing is important. To learn more, visit Colorado REIA.