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What comes to mind when you think about things to invest in that should be (relatively) safe investments? Stocks and bonds are pretty typical, but the market can be unpredictable, as anyone currently studying their investment portfolio can tell you.
Real estate is considered by many to be a safer way to invest. After all, everyone needs somewhere to live. Real estate doesn’t come cheap though. So how can you start investing in it without a ton of money?
Buy REITs
Did you know that you don’t have to buy real estate to invest in it? When you invest through an REIT, or a Real Estate Investment Trust, you get the benefits of investing in real estate (such as enjoying the higher returns typically associated with real estate investments) without having to own or manage any properties.
It works a lot like investing in the stock market, but instead of investing in businesses, you’re investing in properties of various types across a variety of locations. You can get started with as little as $500. Sure, that may seem like a decent chunk of change up front, but it beats the tens of thousands of dollars you’d need for a downpayment to buy a property.
Try House Hacking
Have you ever heard of house hacking? With house hacking, you buy a property to live in while renting out a portion to a tenant. This is an especially great option if your house has a mother-in-law suite or basement apartment.
To make the most of your investment, use the smaller portion of your property and rent the larger out to someone else. Renting out more space allows you to charge more for rent. It’s a great way to offset your mortgage and perhaps even make a small profit.
The Live-In House Flip
Are you handy? Do you like DIY projects? If so, the live-in house flip strategy could be a great way to invest in real estate. In this strategy, you purchase a fixer-upper home and live in it while you rehab it. Once you’ve made the necessary repairs and improvements, you sell the house for a profit. To do this successfully, choose your fixer-upper properties carefully, make sure you have the skills and tools to get the jobs done and choose your projects wisely. Remember, you need to appeal to as many buyers as possible, not just yourself.
As it turns out, you may not need an entire fortune to start investing in real estate. Other real estate investment strategies include working as a wholesaler for investors, scouting investment opportunities for wholesalers, or using the BRRRR method (buy, rehab, rent, refinance, repeat). No matter what investment method you choose, you’ll have to put up some money. Fortunately, you don’t have to put up a ton of money to get started.
Did you enjoy reading this article? Here’s more to read. Tools Are an Investment Here’s How To Take Care of Them.
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