Investing in real estate is currently one of the most popular ways to make money. Flipping – the process of buying a run-down home, renovating it and reselling it for a profit -is particularly popular due to the abundance of shows that show how supposedly easy it is. However, flipping can be tough; it takes a lot of blood, sweat and tears to make a lot of money from it, and anyway, there are lots of other ways to invest in property….
Rent Out Your Old Property
If you’re looking to move up the property ladder and invest in a new home for you and your family, instead of simply selling your old home, why not rent it out instead? The cost of the rent will pretty much pay for your home loan, which means you’ll build up an additional asset, possibly at no cost to you – that’s the kind of investment opportunity that doesn’t come along too often!
Invest in Stocks and Shares
As you can see from Invitation Homes and their recent merger with Starwood, there is plenty of scope to make money by investing in property rental company stocks and shares. The benefit of doing this is that you don’t need to raise enough money to get a mortgage, nor do you have to pay a mortgage each month, but of course, you also don’t have a physical asset to utilize. Still, it is certainly a good way to invest in real estate if flipping isn’t your thing.
Invest in a Turnkey Property
In a similar vein, you could also invest in a turnkey property, which as the name would suggest, is a property that is purchased and managed by a turnkey property. All you have to do is provide the initial investment, which would typically be between $30-50,000 and they’ll do the rest. It’s certainly easier than flipping, and although the company will take their cut, it can be pretty profitable.
If you can’t afford to buy a property, but you’ve been swayed by the investment potential of real estate, for as little as $1000, you could invest in a crowdfunded piece of real estate. Essentially, that would mean that you and a group of other investors would put up the money for a project and share in any resulting profits. It’s a relatively new way of doing things in terms of crowdfunding (it’s basically a new kind of syndication), but it does have some good potential.
If you like the idea of doing this, but you’re worried about the possibility of getting ripped off, the platforms that offer this kind of thing really of a lot of due diligence to get rid of the dodgy deals and leave only the opportunities that they think stand a decent chance of paying off.
The bottom line: there are numerous ways of investing in property, without a single flip in sight, but like any other investment, you need to remember that putting your money into property is not guaranteed to pay off. It is still a pretty safe bet compared to a lot of other options, however.