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Savvy Tips & Helpful Hints

4 Smart Ways to Start Investing in Real Estate

Investing in real estate properties can be a profitable business venture. Unlike the stock market, real estate investors can use leverage to acquire their properties by making upfront payments, and later paying the balance with interest. Unfortunately, a conventional mortgage may require you to make a 20-25% down payment before you can get a property BUT you can turn to Turning Point Lending and get 100% financing with no money down and this is perfect if you are planning on flipping houses which is discussed more below. And even though the real estate market has been hit hard by the pandemic, if you make smart investments, you can make gains post-COVID. You can utilize the services of a reputable real estate agency like balmain real estate agents, when you are ready to invest. Here are four ways to invest smartly in real estate properties and make money. 

1)Buy rental properties

If you have the skills to manage tenants, owning real estate properties, like a rental building, could be a profitable business idea. However, the beginning won’t be easy since you may need to have a reasonable amount of capital to acquire and maintain your properties. You can use lease accounting software that makes doing most of the accounting and managing of finances doable on your own. Owning rental properties can provide you with regular income and you can also maximize your capital through leverage. Between 1940 and 2006, data from the US Census Bureau showed that sales of new houses went up consistently, and only fell during the financial crisis. There is a good chance your rental properties will fetch you money when things normalize.

2)Real estate investment groups (REIGs)

REIGs are suitable for real estate investors who don’t have the time or experience to manage properties but want to run estate businesses. With REIGs, certified companies build apartments or condos, and allow investors to buy these properties through them. One investor may own single or multiple units of living spaces and these can be traditional apartments and condos as well as luxury style condos and apartments. If either option intrigues you, you can find the property information here. However, the company that operates the investment group manages all the property units, including maintenance and tenants acquired. Additionally, the investment company may take a percentage of the monthly rental fees. Investors will always receive their income provided the vacancy rate of the properties does not go too high.

“Auctions are of course one of the most tried and tested ways to acquire investment properties,” comments James Durr of UK-based auctioneer firm Property Solvers.

3)Flipping houses

Real estate investors can also make money by buying houses and reselling them (flipping houses). This business can be tricky though, but if you get the hang of it, you could make tons of money as a house flipper. To flip a house, all you need to do is to purchase one that is below market value, upgrade it, and resell it at a higher price for profit. In buying Chicago houses for flipping, it’s advisable to purchase properties that only require minor repairs or upgrades. Refurbish the home, make it visually impressive, and sell it as fast as possible to avoid depreciation. When you are selling an unwanted property, you can get it off market quicker if you lower the asking price.

4)Rent out a portion of your house

Have a spare room in your basement? Consider renting it out to make some extra cash. Even if you are yet to build your own house, you could still purchase a duplex; live in one apartment and rent out the remaining portion of your available space. The good thing about renting a part of your house is that you will get to monitor the behavior of your tenants closely. What’s more, it is a great way to make money and feel like a landlord without breaking the bank. There is tremendous wealth in the property market. But, if you don’t venture into it, you may miss out on significant money-making opportunities.

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