New Ways to Invest in Real Estate in
Consider these 4 innovative ways of investing in
real estate this year
Investment is a great way to earn some extra cash on top of your daily routine and there are plenty of markets
in which you can do it in. Another option is real estate but the amount of investment that you need to get it up
and running can sometimes be questionable and a bit heavy on the bank account.
However, in 2019 there are new ways in which you can invest in
property, which can make real estate an added option for you to invest.
|Buying a real estate property requires a big chunk of money, but in 2019 you will
find some new ways
to investing in real estate that might be easier on your bank account. (Image source:
A great way you can invest in real estate is by joining others to make one large deal if you don’t have the
sufficient funds to do so. This can be done in either commercial or residential property. The reason this is a good
option is that it can benefit you in a couple of ways.
Firstly, the minimums required to invest in the properties aren’t that large, so even a sum of $500 would be
enough to be an owner of a property. The next thing is the rule of being an accredited investor has been banished,
depending on the investment type.
There are platforms out there to help you invest in real estate, including Realty Mogul and Fundrise, which are extremely popular.
Purchase a Rental Property
This is a rather common method to make extra monthly cash. The idea would be to purchase a property that’s high
in rental fees but low in mortgage payments, home insurance and property tax payments. For example, you could
purchase a property that already has tenants so that the cash flow is continuous.
Whilst there are many positives to owning a rental property, there are also negatives too. First of all, you’d
need to assess just how much in assets you have at the moment and whether you can manage the purchasing of a rental
property as it would require a lot of money up front. Another downfall is choosing the correct tenants. During your
screening process, you need to check whether they’ll be good tenants that won’t cost you outlay in the future or be
crafty with their payments.
|An obvious way to invest in real estate is to buy a rental property, but you need to
find an established
property set up with high rents, but low payments and taxes. (Image source:
This can be a an extremely rewarding way to make a profit if you’re good with your interior design and have a
good eye. This process involves purchasing a property under market value, investing time to improve it and then
selling it on for a profitable sum. How it can be most profitable is if you’re able to find the real bargains in
the market that requires you to invest as little money but still gain a large profit margin.
This option is dependent on the amount of time and money that you have as in some cases, the houses don’t sell
straight away and you have to wait before getting your return on the purchase. Consider the location, price and
what’s required to be done to the property before you consider purchasing it and doing a house flip.
Real Estate Investment Trusts (REIT)
If you’re more of the type to take a back seat when it comes to investment and property the other option is the
stock market. REITs are a great way you can do this. It acts as a fund which you can either invest in
equity, mortgages or hybrid. An equity REIT allows you to invest in property, a mortgage REIT allows investments
in mortgages and a hybrid is both and they tend to offer fairly high yields.
This would be an ideal option if you don’t really have the time to get involved with the dirty work.
All of these options help to cater to your circumstance, which means real estate investment can allow you to
choose more than one way to do it. Just remember that if you’re worried about what could go wrong with your
investment, there’s always help available through residential conveyancing, dispute resolution and commercial litigation solicitors Manchester based.
Jennifer Ranking is an experienced writer who takes her experiences from copywriting to
construct her articles. Originally from the UK, she likes to write on a variety of topics including travel, health
and business having worked with several businesses in the past through her freelance work.