Strategies For Successful Real Estate Investment
In this article, we will be discussing some of the strategies for successful real estate investment. This article is an insight on the best ways potential investors can go about investing, in order to obtain the best possible outcome.
As an investor, do not be quick to run to banks and take out huge loans, in order to have investment resources. Therefore, consider seller financing. Seller financing happens when the buyer allows the seller to purchase the property, in the form of monthly installments. Moreover, the process and paperwork for this kind of financing is not as bulky as bank loans. Additionally, you will not have to pay very high interest rates compared to banks.
Real Estate Investment Trusts:
Secondly, REIT’s are a passive way of investing in the real estate market. For those of you not familiar with REIT’s, they are organizations that purchase and manage properties, and provide shares to investors to purchase. Once, you have purchased shares, at the end of the financial year these REIT’s disburse dividends from the profits made, from the managed properties. Moreover, this is a low risk investment, as you will not suffer the expenses of managing the properties.
House hacking is purchasing a duplex, triplex or fourplex and living in one part of the property, while renting out the other parts. Purchasing such a property will allow you to have free accommodation, while benefiting from rental payments on a monthly basis. However, you will encounter expenses such as taxes, maintenance bills etc, but the reward is much larger.
Real Estate Crowd Funding:
Lastly, real estate crowd funding involves multiple investors gathering their funds to purchase a number of properties. Moreover, real estate crowd funding enables the average person to become an investor. This type of investing requires a few individuals gathering small amounts of money to collectively purchase a property, which means you do not need large sums of money of become an investor.