If you’ve been looking to invest in real estate, but aren’t how to go about it, we’ve put together a list of five ways you can invest in real estate property. Some of these methods include: buying and fixing up a house, rent-to-own, buying rental property and registering your home on Airbnb.
5 ways to invest in real estate property
The first step in any kind of investing is having enough savings; especially if you’re going to buy physical property (rather than a share in property).
If you have enough money for a deposit, buying property is one of the most hands-on and direct methods of investing in real estate.
However, there are many ways to do this. Here we have listed just 5 of the ways you can successfully invest in real estate.
This is an investment option that works by signing a contract to rent a property for a specified period of time, and when that time is up, there’s an option to purchase the property.
How it works is a percentage of your rent payments each month contribute to a down payment on the mortgage once the purchase of the property becomes official.
If you can’t commit to buying a home right away, a rent-to-own agreement can be a good fit. The benefit for a lot of people is that they can pay off other loans without the burden of a mortgage.
As with any investment, there are risks, so be sure to check the contract carefully.
2-Buying and fixing up a home
This is a little more involved than rent-to-own. Ideally, you will have enough money not only for the mortgage but additional funds to renovate/fix up the place.
For this to be an effective method of investing, you need to have an understanding of what renovations will increase the value of the property.
3-Purchase vacation property
Purchasing vacation property is a way of renting out to tenants on short leases. If you can find a good residential property in a nice area, or even a house close enough to a nice area, you can make money more off a few vacationers each year than a year-round tenant.
Of course, good property residential property in a nice area can be expensive (both to purchase and to maintain). If you find the right property for the right price this can be a lucrative investment. The thing to do is know where to look for great deals on real estate (like here).
4-Buy rental property
This can be anything from buying an entire rental property, and renting out rooms or apartment to tenants. If you can manage to keep your expenses low, you can offer affordable rent which will definitely entice prospective tenants.
Another option is to purchase property, live in it, and rent out some of the rooms. By renting out rooms, you can effectively have your tenants pay the mortgage for you.
5-Purchase non-residential, commercial property
Commercial property is next-level real estate investing. The options we’ve mentioned so far are largely low-risk, low-yield options (unless you’ve bought a block of flats, in which case, that’s a little more risk than a house or single apartment).
Investing in office buildings or retail buildings is much costlier than residential property and it’s usually a good idea to look for investment partners.
This real estate investment is high-risk, high-reward investing. With that said, the income from these types of investments is always higher than from residential tenants and lease agreements for commercial buildings are almost always longer than residential leases. Which does mean there can be a little more security.
How do I find these properties to invest in?
Finding properties to invest in is the easy part. Or, at least, it is now. With Real Estate Cake, real estate investors have a platform to find off market and exclusive deals in one place.
The number one investor platform for finding deals. We specialize in foreclosures, free foreclosures, short sales, tax liens, wholesale deals or homes that can’t pass the typical inspection.
Get the facts quickly to determine if the deal is for you.
Want to see what your rental income property options are? In the Real Estate Cake app, select the state, and city you’re looking in and then select ‘Rental Income Property’ to find out what’s available.
If you’re looking for an affordable rent-to-own, you can browse our selection of condos, townhouses, duplexes, and single-family homes. The app allows you to select by state and city so you can be as specific as you like about where you want to buy.
How Real Estate Cake is helping real estate investors
If you are looking for exclusive deals on foreclosures, free foreclosures, short sales, tax liens, wholesale deals or homes that can’t pass the typical inspection, we’ve got you covered.
For $299.99 annually, less than one dollar per day, real estate investors and agents have exclusive access to these deals on Real Estate Cake.
Ready to find a deal? Visit us at www.realestatecake.com or download the app from the App Store or Play Store.