Investing in real estate is a great way to diversify your portfolio and make a ton of money in the process. At the same time, figuring out how to start investing in real estate can seem like a monumental undertaking.
But a few minutes of your time today can lead to a rich, rewarding future as a real estate investor! Keep reading to find out what you need to know to get started and how you can minimize risks.
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Start Small
If you’re starting from scratch, odds are you’re not going to have a lot of extra funds to play with. Don’t worry, that’s fine! Moreover, it’s better that way.
Smaller properties are easy to manage, making them the perfect learning opportunities. That goes double for homes that need some tender loving care. After all, there’s a reason why home renovation shows are so popular.
Flipping is a viable strategy because it allows you to buy for a low rate then sell for a major profit. While it requires more extensive work than your normal investment properties, there’s potential for a higher dividend.
Once you take care of the necessary repairs, it’s time to make your new property look brand new. The highest yields often come from a few main areas of the home:
- Kitchens
- Bathrooms
- Bedrooms
Any renovations you can do in these three areas should take priority, particularly in the kitchen, which has a recoup rate of between 60% and 120% of your investment.
Hack Your House
If you’re not looking to spend a small fortune fixing neglected properties, you’ll want to look into one of the safest investment opportunities out there: rental properties. And what better property to begin with than your own home?
To hack your house, you’ll first need to own your home. While that can seem like an obstacle, it’s worth it in the end.
That’s because house hacking involves renting out part of your owned property while you still live there. This is becoming an increasingly common phenomenon as homeowners renovate and rent out their basements or single bedrooms in their house.
Scout New Properties Using an Online Hub
One of the toughest things about investing in real estate is figuring out where to find new properties. The most efficient method is to shop online using a real estate portal. Think of these sites as an amalgamation of all available properties in a given area.
And because you’re using digital portals, you can invest across the globe. For example, you could keep up with the housing market in Egypt without even setting foot in the ancient land!
How to Start Investing in Real Estate Like the Pros
When it comes to investing in real estate, it’s best to start small, whether that means flipping a house or renting out rooms in the home you own. Once you’re comfortable with the process, you can use online portals to scout exciting new opportunities all across the globe!
For more tips on how to start investing in real estate or general advice on managing your properties, make sure to check out the rest of our real estate blog!
