List Headline Image
Updated by Joanna James on Mar 16, 2024
Headline for Ways to Get Started in Invest in Real Estate – Your Guide To Easing Into Property Investments
 REPORT
Joanna James Joanna James
Owner
5 items   1 followers   0 votes   8 views

Ways to Get Started in Invest in Real Estate – Your Guide To Easing Into Property Investments

Investing in real estate is a great way to add diversification to your portfolio and an additional stream of income. Read on to find out a few key ways to get started in investing in real estate.

1

Buy real estate investment trusts

REITS allows one to invest in real estate without physical real estate. Similar to mutual funds, there are companies that own commercial assets such as hotels, apartments, office buildings, and retail spaces. These types of trusts tend to pay high dividends, which makes them a favoured option among those going into retirement. It's a great option for those who do not need a regular income but wish to simply grow their investment further. There are plenty of apartment projects in Sri Lanka by developers such as John Keells Properties, which one can consider looking at when considering making real estate investment trusts.

2

Use an online real estate investing platform

Today there a several platforms that connect real estate developers to investors who wish to finance projects either through equity or debt. Here, investors hope to receive once-a-month or periodical distributions in exchange for taking a risk and paying a fee to the platform. Most of these online platforms are open to accredited investors or have a net worth of $1 million or more.

3

Consider investing in rental properties

Buying and renting out an entire investment property is definitely a possibility. The key is finding one with collective expenses lower than the amount you can charge in rent. If you are not keen on being the person who responds directly to tenants when encountering problems, you might need to consider hiring a property manager.

4

Consider flipping investment properties

Called house flipping, the strategy involves a larger and higher element of risk, because much of the coasts behind flipping requires an exact and accurate estimate of how much repairs will cost you. Here one needs to find an underprice home, renovate it inexpensively as possible and then resell it for a handsome profit. Finding an experienced partner can be a great way to go about this. As you might have the capital or the time to contribute, and your partner may be good at managing the project to estimate the experiences. Another risk to consider is that the more one hangs on to the property, the less money it makes because you will still need to keep paying a mortgage without really making an income. One way to lower the risk is to live in the house as you fix it. This certainly works as most of the renovations are cosmetic and superficial at best and you don't mind a bit of dust.

5

Rent out a room

If you are keen on easing into the waters of real estate, you can get started by renting out a part of your home via sites such as Airbnb. Renting out a room certainly feels a lot more accessible than the seemingly fancy concept of investing in real estate.