Real estate is a time-tested path to a secure financial future, and everybody knows it. That's why there are over 8 million independent landlords across the US.
Luckily, you can be enjoying a piece of that pie right now, even with a small initial investment. Let's talk about how to get into real estate investing for beginners.
Choose Your Type Of Real Estate Investing
You can always put your money into a real estate investment trust or REIT to earn dividends. These companies have to give out at least 90% of their profits to their shareholders and the yields get high, anywhere from 2% to 8% annually.
Another option would be to flip houses. If you're handy, this could be a great side hustle with really high profit margins. However, you can pay to have repairs done or even avoid them altogether. If you learn the ins and outs of the market, you'll be able to buy low and sell high without any need for repairs.
Then, there is the most common form of real estate investment, which is rental units. Buying a rental property has long been considered the safest investment for one simple reason; people need somewhere to live.
Look Into Your Options
No matter what type of investment you think is right for you, you will always have options. For example, if you decide to invest in an REIT, you can always reinvest your dividends until you can afford your first property.
If you decide to flip houses, that doesn't mean that you can't rent them out once they're livable. That's a great way to generate income for a potentially smaller initial investment.
If you decide to go the rental route, you don't have to manage it all on your own. When you buy a rental property, you're essentially buying a job. However, if you hire a property management company, they will handle maintenance, repairs, rent collection, tenant screening, marketing, and everything else for just a small portion of your rental income.
That means that your property could be generating entirely passive income while you can just sit back and enjoy the cash flow. You just have to look for the right property management services first!
Figure Out Financing
If you are interested in an REIT, you can get started for just a few hundred dollars. However, if you want to buy your first property for rent or resale, you need to determine how much you can afford.
First, use an investment calculator to determine how much you can buy with your cash-on-hand, and then look for properties in your area that match your buying power. From there, you'll be ready to start investing!
Start Investing Today!
Now that you know a little more about real estate investing, there's no time like the present to get started. It's considered the safest investment for a reason, and it can lead you to a secure future and retirement. Stay up to date with our latest real estate news and feel free to contact us with any questions about property management!