When people think about investing their hard-earned money, they want to know that it will be safe. Of course, there is no way to be completely secure, but there are some investment strategies that are lower risk than others. Real estate is one of the oldest forms of practice and it is for a good reason. You get something tangible when you invest your money.
Investing in real estate takes on a lot of different forms. This means that there are various strategies that will work for some people better than others. This opens the possibility of you being able to find the best option for your needs. In this article, we will go over several of the most popular ideas when it comes to investing in Resideable real estate.
1 – House flipping
Flipping houses is probably the least passive of any type of investing, however, the profits that are possible are fantastic. When the market is as hot as it is right now it can be very lucrative to take on house flipping as a way to make money in real estate. The way that it works is that you buy a house that needs to be gutted and renovated in a good area. Then when the house is updated and beautiful, you sell it at a huge profit since the market is so good right now.
It takes a while to see the profit and the upfront costs are high since you have to buy the house and pay for the work. If you are handy then you can do a lot of the work yourself and save a lot on labor costs to increase the profit margins of the house.
To scale this business up, just work with some of the top mortgage lenders to always have an offer going on a house before you finish the work on the current one. When papers pass, you can start the demolition while the other one hits the market.
2 – Airbnb
When you think of how much a short-term renter will pay to stay in a hotel for a night, and then figure that they could be spending that on your property, it is quite apparent the profits that can be made when you invest in Airbnb.
People are not looking for hotel experiences and often look for something more authentic. If you buy a property and make it cozy, then it will feel like a home away from home and people will be happy to stay there and you make money.
3 – Rental properties
Not everybody has properties in touristy areas where they can make more money with Airbnb. Some love the security of knowing how much the property will make every month. Either way, buying rental properties is a great way to invest in real estate. When the housing market is hot, there is always a big increase in renters.
Make sure to pick good tenants and you’ll have them sign the lease every year.