Investing in real estate can be a challenging process for beginners. However, there are basic tips that make it easier. Real estate is a major investment, so ensure you approach it with care and consideration. Following these tips will help you get started.
Which Investment Method is Right for You?
Most real estate investors choose one of these methods:
The differences between the two are huge, so this is a big decision.
Investing in a Real Estate Investment Trust
If you select the REIT method, then you’ll be purchasing shares of a portfolio of real estate. REITs have professional managers that select the real estate in the trust. This method is similar to purchasing a mutual fund, where you just invest your money and don’t have anything to do with managing the real estate yourself.
A real estate investment trust can be a good investment. It’s easier to enter the real estate market through REITs. You can buy shares at a level that’s comfortable for you and hold them or sell them whenever you’re ready.
Many REITs also pay dividends monthly or quarterly and offer you the choice to automatically reinvest your dividends into the trust, automatically growing your number of shares until you’re ready to start receiving the dividends to supplement your income.
It’s important to research multiple trusts and compare them before you invest. Study the terms of each trust and how money is added. Has this been a profitable trust? Even though past performance doesn’t guarantee that future profits will be similar, you can see how their investment philosophies and methods have worked out in various real estate environments.
Investing in Actual Real Estate
Buying actual real estate is a large investment. Do you want to buy properties, fix them up, and flip them? Or would you like to hold on to the properties and rent them out?
Have you considered all of the obligations that come with owning extra property? Can you afford additional mortgages and property taxes? What about repairs and maintenance costs of the property?
Investing in homes, businesses, or apartments is a big decision. Plus, these investments are not liquid, like REITs. If you want to get out of the investment, it could take some time to sell the property.
Consider these aspects of buying, managing, and selling properties:
Investing in real estate is a big step. Consider talking to a professional advisor about your options to ensure you’re aware of all the possibilities and downsides. By thinking ahead and carefully planning your investment, you can make more money and avoid headaches.
Combined authors with Michelle Russell
© The Prosperity Process, LLC
for Short Term Rental Revenue
When you subscribe to our Newsletter, we appreciate the honor. Yeah, we know you can cancel anytime but you're still trusting us to add value to your business and we take that to heart!
Not only does Michelle do weekly podcasts but she and her team write informative articles each month. You may know that Michelle does weekly Q&As and Accountability Calls with her members. But now, she's been allowing some of her trainings and check-in's to spill over into her Insiders.
Beginning in August, she's doing a Monthly "10 in 10 at 10" for her subscribers only. So, you'll be able to check in with Michelle and ask her questions or get some advice LIVE.
Plus, she's doing a Spotlight Member and Hotseats to help you grow your business learning from people just like you with families just like yours. Be around people who can assist you in building and growing what could potentially be the very business that carries you to financial freedom!
Become an Insider Now!