Invest in the real estate through the following ways

December 28, 2018
There are many investment platforms to choose from but real estate becomes the most common investment vehicle. One of the reasons is that real estate has a lot of doors of opportunities for making a profit. However, one must keep in mind that buying and owning a real estate can be complicated, especially if you don’t thoroughly understand what real estate is all about.

What leveraging means in real estate?

Real estate is different from other investing platforms because it gives you the tool that is not easily available to other investment platforms such as stocks. To purchase a stock, you need to pay the value of a stock at the time you make your order. On the other hand, if you invest in real estate, you will only be allowed to pay a portion of the total real estate value. The usual down payment is 20% to 25%. Some require less depending on your location. This gives you the power to control the whole property as well as the equity it holds by just simply a fraction of the total property value upfront.

You can invest in the real estate in the following ways:

Be a landlord

If you want to generate a passive monthly income, then being a landlord is the best choice. In fact, it is perfect for people who have an aptitude for dealing with tenants. To begin with, you need to have a healthy amount of capital to finance and cover the upfront cost of maintaining the property, especially during vacant months. There are a lot of benefits to becoming a landlord.
  • You will have a regular source of income.
  • You will be able to maximize your capital through leverage.
  • Some of your expenses are tax deductible.
  • If there are losses, you can offset gains in other investments.
Real estate investment groups

This investing method is perfect for people who want to hold rental real estates but don’t want to personally run the business. It is a hands-off approach and still gives you the income and appreciation. It is similar to a small mutual fund for rental properties. A company purchase or build a set of apartment blocks and enables investors to purchase them through the company. As an investor, you can buy one or multiple units and the company manages and maintains the units. In exchange, the company takes a percentage of the monthly rent.

Real estate trading

It is perfect for people who have real estate valuation and marketing experience. The pros of real estate trading are you get to generate returns in just a short time frame.

With so many ways to invest in real estate, choosing the best one can be a daunting task. Which is why it is important to invest in your real estate education first. Dean Graziosi is the best person to help you know real estate better. He is a successful real estate investor and a businessman with a stellar track record. Feel free to check his Instagram account to get to know him even more.