3 Ways To Invest In Real Estate
By : @BlackWealthDad - Twitter
https://thewealthbuildingdad.com/
90% of Millionaires invest in real estate. I know what you are thinking! I’m broke, I barely have money, and 1,0000 other reasons why you can’t invest in real estate. Yes, it's hard. Yes, you need money. If you want to do it, you will figure it out.
If you are with the excuses, then leave now. But if you want to know three ways to invest in real estate, then read on.
I will give you some things you can do to help you invest in real estate.
3 Things To Do Before Investing In Real Estate
1. Get Rid of High-interest debt.
a. High-Interest Credit Cards
b. Personal Loans
c. Payday Loans
2. Save up an emergency fund.
3. Check your credit report and remove any discrepancies (if any).
Let's get started, shall we?
3 Ways To Invest in Real Estate
Number One: Traditional Real Estate
Such as:
1. Single Family Homes Rentals
2. Apartment Rentals
3. Vacation Rentals
I know this is self-explanatory to many of you, so that I will call this the traditional route. So what I mean by traditional is pretty much just acquiring a piece of investment property yourself, so this could be a piece of land waiting to be developed.
This can be a single-family home. It can be an apartment building; it just depends on how much experience and capital you have.
I call this the traditional route. It's essentially hunting for your deals or using a broker to bring you deals in whichever route you choose.
Whether you're looking at single-family, commercial, or whatever, you could be self-storage. Just make sure that you have the right team around you.
4 Key Real Estate Team Members To Consider.
1. Real Estate Agent or Deal Finder
2. Lender(s)
3. Contactors and Handyman
4. Property Manager
Number Two: REITs
I'm sure you've heard about REITs as well. So REITs they've been around pretty much since the 60s. What REITs stand for is Real Estate Investment Trust.
A REIT is owned by compnaies that have income producing real estate across a range of real estate sectors.
REITs give an investor access to a more prestigious or challenging to break into asset class which is typically commercial real estate.
Also, the most significant caveat in REITs is that they have to payout 90% of thier net earnings of their taxable income yearly to their shareholders.
They distribute it in the form of a dividend, so historically, REITs pay pretty high dividends. You may be interested in this asset class if you want to get passive income from dividends.
Especially if you don't have enough money for a down payment to buy a physical asset. Or, if you don't want to deal with everything that comes with physical real estate.
Number Three: House Flipping
Flipping means acquiring a property for X amount and selling it at a much higher rate for Y. Okay, so there are many ways that you can acquire off-market deals or acquire deals that you know have potential and a lot of upside.
3 Ways to Find Off Market Deals.
1. Direct Mail Marketing
2. Network With Other Investors
3. Driving For Dollars
Flipping houses is risky but can be very lucrative if you have the right team, money, and systems. However, in my opinion, the cons outweigh the pros for sure. That's just me because my risk tolerance is slightly lower than others.
So many factors can go wrong while flipping a house.
You can have the economy changing. You can have lending or funding change. You can open walls in the single-family home and find mold and electrical problems.
With that said, all forms of real estate investing have risks. With flipping, you're making a lot of money in a brief period, but you can't escape risk no matter what investment vehicle you choose.
The real deal is, will you take that risk that may change your life for the better and forever?
Conclusion
These are three ways you can invest in real estate:
1. Traditional Real Estate
2. REITs
3. House Flipping
Yes, investing may seem scary and extremely risky. If done right, you will have the opportunity to change your life and have a better retirement or even retire well before the retirement age (67.5).