When it comes to investing, there’s a broad range of strategies to consider. As you choose the right option for you, there is a lot to think about. Not only is it important to understand how different investment vehicles work, but it’s also important to diversify your portfolio of investments in order to safeguard your assets and mitigate risk. One area of investment that many people don’t always consider is real estate investing. While real estate investments can seem a little offputting if you’re not a real estate agent, it’s actually possible to capitalize on real estate in a variety of ways as an investor and get monumental returns in the process. Here are five need-to-know real estate investment tips.
1. Use an online platform to maximize your alternative investments.
If you’re new to the real estate investment game or to alternative investments in general, it can be useful to use a tried and true platform to help you learn the ropes. Especially if you’re only targeting small or medium hold investments and want access to asset-backed debt investments like multi-use real estate, a platform like Yieldstreet can be well worth the investment of time and energy. If you’re not sure whether or not this platform is right for you, it could be helpful to read a few Yieldstreet reviews to get the pros and cons of the platform before you go all-in. The first step you should take towards real estate investing as a potential buyer should be doing your due diligence about the market and the investment opportunities. An online platform like Yieldstreet can help you learn the ropes and ensure that you are making the most of alternative investment opportunities.
2. Flipping houses can give you fast returns.
One of the fastest ways to make a quick profit in the real estate market is by flipping houses. When you flip a house, you use the opportunity to buy a home for a low rate, invest in construction upgrades, renovations, and interior design projects that increase the house’s value, and then sell it for a higher price than you took out a mortgage for. While there are definitely some horror stories and risks associated with flipping houses, if you want a fast return on your real estate investment, flipping a home is definitely an avenue to consider. Work with a real estate agent to help you find properties to flip, and make sure that, as a borrower, you’re doing your own due diligence so that the mortgage yours doesn’t trip up your opportunity to flip a home successfully.
3. Sometimes it’s better to sell land than a home.
While it can be exciting to invest your time, ingenuity, and money into flipping a house, sometimes demolishing a home and just selling the lot is going to be more cost-effective than spending your energy working to flip a home that’s more of a flop than a slam dunk. If you aren’t familiar with how to sell land, a website like AcreBin can help you list, sell, and even find land to invest in. Many times buying land and holding it for several years can be a great medium-term investment, and, thanks to the internet, finding and selling a piece of land has become easier than ever. Selling a vacant lot for the right price can be a great option if you don’t want to deal with the logistics of renovation and interior design that come with flipping.
4. Rent out hot properties while you wait for them to appreciate.
If you’ve invested in a condo or home and are planning to sit on it for a bit while it appreciates, one way to maximize your investment is to rent out your property to other tenants. Whether you decide to take the route of becoming a landlord and finding tenants to sign a lease or are just interested in subletting or renting out your home on a nightly basis via AirBnB or other similar platforms, this helps you increase your revenue while you wait to formally sell your home. Renting out your property is a good option if you’re looking to boost your annual income while you wait for the property to appreciate it.
5. It can be worth it to hire a property management company.
If you’ve decided to rent out your property by having tenants, it’s worth thinking about whether or not it makes sense to work with a property management company. While a property manager will take a cut of your profits, they’ll also help handle the day-to-day responsibilities of managing your property and tenants. Especially if you own property outside of the state you live in, this can help you avoid some major headaches without hurting your bank account too much.