Did you know that 12.3% of millennial renters plan to always rent? This might not sound like a lot, but it comes out to millions of individuals.
For real estate investors, this means always having at least 12% of millennials, not including other generations, looking for a place to rent.
Now is a great time to start a real estate investment property portfolio, but how do you get started? Keep reading to learn some of the common options.
REITs, or real estate investment trusts, allow you to invest in real estate through a process similar to investing in stocks. Although not mutual funds, they are often compared to this form of investing.
Instead, they are companies that own commercial real estates like apartments, retail spaces, hotels, and office buildings. REITs pay high dividends but investors that don't want the regular income can reinvest the dividends.
REITs can be good investments but the risk factor varies depending on the type of REIT you purchase.
Find Real Estate in an Online Investing Platform
Another way to start your real estate portfolio is by using an online real estate investing platform.
These platforms can connect real estate developers who need financing for projects. Investors can give them this money in return for monthly or quarterly distributions.
These aren't easy to unload like a stock because they are speculative and illiquid.
You'll need money to make money as most platforms only offer these opportunities to accredited investors. For this reason, this option is not the best for beginner real estate investors.
Invest in Rental Properties
When people ask how to start investing in real estate, they are likely looking to buy rental properties of their own.
You can buy and rent out an entire investment property but calculate how much you can afford and the potential profit.
You'll also need to consider the fees that come with the staff you hire. For example, property managers can handle the day-to-day property tasks to make things easier.
One of the best real estate investment tips is to use a technique called hacking. This refers to buying a rental property and occupying one of the units while renting out the others.
This is a great way for new investors to make money and afford all of their expenses at the same time.
Consider Flipping Properties
For some, the best property to invest in is one that needs work and can be flipped for an even greater profit. Although this form of rental investing is becoming more common, it takes a lot of hard work.
Not only will you need to ensure your math is correct, but you'll also need to spend time working on the investment property. You can hire someone else to do this but it wouldn't make sense for your budget.
Start an Investment Property Portfolio Today!
If you want to buy an investment property, now is the time to do so! Renters are on the rise and looking for affordable living.
Start your investment property portfolio today by considering these investment ideas.
Once you have a rental property in your name, hire property management services for help. Contact us today to learn more about what we can do for you.