For one reason or another, many people don’t get into real estate investment, even if it’s something they’ve considered pursuing. The entire business can be rather intimidating, at least from an outsider’s perspective. But like anything, there are plenty of ways to get started and get your ideas off the ground. It’s all about going in with your eyes wide open. Once you break it down into smaller, more manageable pieces, the process can be pretty straightforward. So, how easy is it to invest in real estate? Well, let’s look at some beginner’s steps to real estate investment, and we’ll let you judge that for yourself.
- The first and most important thing that comes with any type of investment is financing. You have to have the money to invest before you can see it grow and multiply. Rental properties typically require a minimum 15% down payment. You’ll also want to have enough budgeted for inspections and licensing, as well as future upgrades, repairs, and general maintenance.
- Passive real estate opportunities can be a great way to get your feet wet and start learning the ins and outs of the market. Rental properties are among the most well known. Acting as landlord, you’ll find and vet potential tenants and keep up with maintenance and repairs on the property. Rental fees are a fantastic source of passive income. Real estate investment trusts (REITs) are another low-impact investment. The professionally-managed trust is dedicated to commercial and medical real estate acquisitions, and you’ll receive dividends as a shareholder.
- Once you’ve grown accustomed to the world of real estate investment, you may be interested in taking on a more active role. Wholesale, prehabbing, and house flipping are perfect for your next steps. Wholesalers act as a mediator between buyers and sellers. Perhaps you purchase a discounted house contract, then you sell the contract to an interested investor. Prehabbing is the art of fixing up the cosmetic appeal of a home by painting, cleaning, and landscaping. House flipping, or rehabbing, is a full renovation of the property and its structures. Of course, taking any of these active roles would mean that you receive payment for your work.
As you can see, it doesn’t take a lot to get started in real estate investment. All you need is a little money, the right industry connections, and the will to succeed in the business. If you’re still feeling a little overwhelmed, consider hiring a property manager to help guide your investments. Here at Talley Properties, we offer clients a variety of services and over 40 years of real estate experience. Contact us today to learn more!
