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.
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.
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.
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.
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.
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, 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.
Buy and hold real estate investing is one of the most common real estate investing strategies. It refers to the process of purchasing a property and holding on to it for an extended period, usually 5 to 7 years. The buyer may or may not sell the property down the line, but it is considered to be an excellent way to build wealth over time.Continue reading
According to the National Association of Realtors, statistics show 51% of buyers found the home they purchased online. This shows how powerful digital can be in your marketing efforts as a real estate investor. If you are looking to scale your real estate investing business I highly suggest using digital marketing to do so.Continue reading
With the tough competition in real estate these days, the ability to stand out from the pack is crucial. This is where effective marketing strategies come in handy. However, as a real estate investor and professional, trying to figure out which strategy works and what doesn’t is time-consuming.Continue reading
When people speak of success, they often talk about how they got their career started and how far they were willing to go to reach their goals. One of the ways to reach your goals is to find someone who will personally guide you. Remembering them this month is one thing, celebrating the success you reached with their guidance is another!Continue reading
Why do people invest their money? People think that their finances automatically grow whenever they invest in real estate. However, that’s not always the case.
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?
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.
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.
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:
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.