There are many ways to get into real estate, whether you’re looking for a way to build your portfolio or to earn a full-time income. But before you jump in, you should think about your risk tolerance and local housing market to make sure that you can find the right investment.
Time Management: This is one of the most important factors for success in any business, so if you are new to real estate investing, start by figuring out how much time you can carve out each week. You should allocate at least 10 hours per week, but more is better if you are serious about getting started.
Your Network: You can build your real estate business by networking with other professionals in the industry. This will help you earn a higher income and give you a head-start when it comes to doing deals. It also helps you build trust, which will lead to more opportunities in the future.
Identify Your Next Project: Now that you’ve figured out how much time you can devote to your business, it’s time to focus on what you’re going to do next. This may mean researching different property types, buying a rental, or even finding another job to supplement your income.
Once you’ve figured out your priorities, it’s time to set up some systems that will make the most of your time. This will allow you to spend less time on your business while still making a good profit, so don’t skip this step!
Mortgages: Most people buy residential real estate through a mortgage. These loans require a down payment from the buyer and are backed by either the federal government or a private lender.
Real Estate Investment Trusts (REITs): REITs are similar to stocks, but they own entire mortgages and generate their profits from interest earned on those mortgages. These companies are a great way to diversify your real estate investments, since they hold several properties at once and pay a dividend to investors like you.
Hard Money Lending: As a hard money lender, you can provide short-term loans to real estate investors and earn interest on those loans. These loans are available on peer-to-peer lending platforms or directly through your website.
Land: If you own a large amount of land, consider selling it to developers for development or to companies that wish to harvest natural resources from your property. These land rights can typically be worth more than they were purchased for, and they can help you accumulate a significant sum of cash.
REITs: If you have a large portfolio of investment properties, consider purchasing shares of a real estate investment trust. These are typically offered by many major investment brokerage firms and trade on financial exchanges, so it’s a simple process to get into.
Master Limited Partnerships: If you want to diversify your real estate investments, but don’t want to do the actual management work yourself, consider purchasing a share of a master limited partnership. These partnerships are a popular way to invest in real estate because they diversify your risks and earn you distributions from the profits.