How Professional Landlords invest in Real Estate.
The World’s smartest people have affirmed that real estate is one of the best ways to generate and increase wealth. This article is ready to put you on the show and show you how to get started.
Did you know that ninety nine percent of all millionaires are said to have become as wealthy because they invested in real estate? Yes, that’s right and any wise man with earnings and a stable income, investing in real estate is one of the best choices available.
However, at the mention of real estate, what comes to the mind of many people is to become a landlord but investing in real estate goes way beyond that. Below are a couple of ways to get involved in this finances changing venture:
1. Become a landlord:
This comes first because it has existed for the longest since the medieval times. From the oldies like who acquired enormous plots of land and gave them out for rentals. Becoming a landlord involves purchasing a property and providing rental services to tenants for various purposes. I believe landlords are the most peaceful wealthy people to ever exist; their income flow grows in their sleep even without working, or economizing, how cool is that?
2. Flip properties:
Investment in real estate is a fanciful word but the process is not always without its lows. Flipping properties involves acquiring desolate properties and refurbishing the structure to be resold at a higher price. The challenge with this form of investment is that the income flow may not be continuous but every now and then, the income is worth it.
3. Bird-dogging:
Investors are always on the lookout for properties to purchase and the best deals to put their money into. It is the work of a bird dog to help them search and make enquiries for the best deals for an agreed percentage in cash or in property. However, being a bird dog like other ventures is not a walk in the park, because investors may not want to pay for information that they can get from listings. To stay afloat, birddogs must find interested investors before a new property is listed.
4. Property management:
Whether as a landlord or a property flipper, the job could become tasking hence the need for the role of managers. Investors who manage properties are the ones who help to maintain the properties, marketing and negotiation with tenants like an intermediary in exchange for a given percentage or for a flat rate.
5. Investment in Online Real Estate platforms:
Maybe it rings a bell of risk but real estate is a trade of numbers, having its many risks and fears. Investors who are interested in real estate could also start by engaging online real estate platforms. These platforms are of different kinds, whereas it may involve crowdfunding from investors to erect structures from scratch or to get involved in other forms of real estate investment.
Other types may include, real estate photography, real estate investment groups and so on.
Like other trades, real estate investment requires more than passion, it requires skills and technical know how. If you intend to venture into it, here are a few things to note:
1. You must first build a niche
2. Build a network
3. Encourage referrals
4. Stay educated and updated in the market.
5. You’ll need an accountant.
To become a professional in the field, you’ll need more than just the money to spend. Investment requires an understanding of finances and its technicalities including inflation rates.
In the words of Franklin Roosevelt, a one time US President, “real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, managed with reasonable care, it is about the safest investment in the world.” Needless to say that for every safe place, there is a pillar, that’s what insurance companies provide; pillars and support for your investment.