“Real estate is an imperishable asset, ever increasing in value. It is the most solid security that human ingenuity had devised. It is the basis of all security and the only indestructible security.” –Russel Sage
There has never been any doubt that one of the foolproof ways to see your money grow is to invest it. In this regard, you can see your money double and even triple (depending on how well your investment is doing) without so much effort on your part. Of course, investing comes in a myriad of ways but if you are a savvy investor, you would be wise enough to know that it is imperative to diversify. One of the excellent tried and tested ways to invest your money is through real estate. However, some—if not most—individuals would be a bit hesitant or skeptical as regards these investment route. More often than not, their skepticism and hesitation would stem from the misguided notion that real estate investment would require a lot of money up front—or needs a lot of work going on to be profitable.
While most of that is true, advancements in technology as well as developments in real estate have made it easier for just about anyone to start an investment career in real estate. Sure, real estate investing is not for everyone, but with the right technique, attitude and with enough patience, it can be a potentially lucrative venture. If you have been thinking of expanding your investment prospects and horizons, here are several ways you can invest in real estate:
- Buy a Rental Property
If you want to create and produce a positive cash flow, it would be a good idea to buy homes and rent them out to tenants. To ensure that you can entice prospective tenants to rent from you, buy properties in areas that are in proximity to offices, schools and entertainment hubs such as a condo unit perhaps in Bonifacio global City. However, know that while purchasing rental property may provide you with monetary returns, it typically requires a lot of cash up front considering the down payment required and the essential maintenance necessary to rent it out. Weigh your options and determine if your return on investment would be worth it.
Apart from that, you need to ascertain that you know how to deal with tenants. Before allowing tenancy, you need to screen your renters. Be firm with your policies and your renters.
- Flip Houses
Although flipping houses is considered an incredibly risky venture, it is one of the most rewarding real estate investments when done right. Considering that property values have consistently seen a steady incline over the years now is the prime time to start your house flipping endeavors. To the uninitiated, flipping houses is the process of purchasing a home under market value, sprucing them up then selling them for profit. However do know that a successful flipper needs to be patient and persistent when it comes to searching for those ideal bargain homes. The best deals are usually those homes that do not require a lot of touch-ups to sell. Find a flip that only needs the essential minor cosmetic repairs, improve it aesthetically and sell it on the market. However, brace yourself for the possibility that your home might not sell as fast as you wish which is precisely why a great deal of patience is required from you. Moreover, do not always expect it to yield so much profit as flipping homes is more often than not, taking an incredibly big chance. Mitigating this is possible by being meticulous about a home’s particular location, price and needs. It might take a bit of an experience, but if you have a natural talent for flipping homes, it can be one of the best investment routes you will ever make.
- Rent a portion of your existing home
Today, the process of renting out unused rooms in your homes or even unused properties has been made easier through app innovations such as Airbnb and the like. Through developments in technology, property owners and homeowners are now given the avenue of advertising a rental space online to prospective temporary tenants who are in town on vacation. If you have an unused area in your home, you can turn that into a money-making venture by promoting it online and have travelers book it. Alternatively, your unused vacation houses could yield a lot of profit if they are located in a premier destination. However, do note that you have to be comfortable with strangers coming in and out of your home. If you are wary of this, screen them before approving their applications.