A Quick Guide to Investing in Real Estate

A Quick Guide to Investing in Real Estate

Investing in real estate has been one of most lucrative forms of investment vehicle since time immemorial but it has particularly gained popularity over the last 50 years. While investing in real estate might seem complicated to most people, property investment buying is actually easy if you’re armed with the right information and proper guidance while conducting business in the cutthroat world of real estate investing (REI).

To help you get started in the business, outlined below is a list of options that you should consider when investing:

Rental properties. Owning rental properties is one of oldest forms of real estate investing. In this type of investment, you basically purchase a property and lease it to a tenant. You earn profit from the monthly rental fee that the tenant pays. However, as landlord, you are required to pay for the house’s mortgage, taxes, and costs of maintaining the property, so there is a lot of calculation that you need to do before deciding on whether you should invest in rental properties.

Wholesaling. Wholesaling is considered one of the easiest and most profitable forms of investing in real estate. Also known as flipping properties, wholesaling involves putting a property under contract and then selling that contract to another wholesaler, rehabber, or end-buyer. When wholesaling houses, you’re not buying the property per se; you’re just putting it under contract. While there are risks in the business, such as holding the property for too long, flipping properties is considered a low-risk business venture. Many investors prefer wholesaling as they can earn huge profits in a short period of time. There are instances wherein you can receive your pay check for a wholesale deal in as little as a week.

Rehabbing houses. Rehabbing homes is another form of REI that is gaining popularity in recent years. When rehabbing, you basically buy a low-priced property, renovate it, and then resell it for profit. Also called fixing and flipping homes, rehabbing can yield huge profits, especially if you get good education and master the art of renovating houses. This is particularly true in today’s economy, which is beset with hundreds of thousands of low-priced houses such as bank owned homes and distressed properties.