Real estate can be a lucrative money-making opportunity, but you may not be aware that there are other ways to invest besides becoming a landlord or flipping houses. In some cases, investing in real estate is as easy as buying and selling stocks.
Here, we’ll discuss real estate investing, detail different ways to invest in real estate and describe the resources you need to get started.
What is Real Estate Investing?
Real estate investing is the purchase, sale, ownership, or lease of any property or land for the purpose of making a profit. With real estate investing, the investor usually must have a large amount of capital upfront.
How to Invest in Real Estate
For those looking to invest in real estate, there are multiple options.
Types of Real Estate Investments
- Rental Properties
Handy do-it-yourselfers and patient managers are great candidates for owning rental properties. While investing in rental properties typically provides a regular income and plenty of tax-deductible expenses, you must also be aware of the potential risks such as property damage from tenants and reduced income from vacant months.
- Real Estate Investment Groups (REIGs)
With REIGs, investors purchase property (such as apartments or condos) from a company to join the real estate investment group. While the investors own the units, the company that operates the investment group is the one that manages the properties.
- Real Estate Investment Trusts (REITs)
Similar to mutual funds, REITs are companies that own, operate, or finance for-profit properties. Unlike other real estate investments, REITs are publicly traded and, as a result, highly liquid. Investors don’t need a realtor or title transfer to cash out.
- House Flipping
House flipping involves buying, renovating, and reselling properties for a profit. To successfully flip houses, you must be handy and experienced in real estate. Most flippers try to convert a property within six months to avoid paying mortgages in the long term, which cuts into the profits.
- Real Estate Investing Platforms
With online real estate platforms, those who wish to invest in bigger deals can join others in real estate crowdfunding. This method allows you to invest in multiple projects at once with less capital than the other investment methods. With online real estate platforms, you can diversify your portfolio and invest in properties all over the world with just a few clicks.
Is Real Estate Investing Feasible?
Whether the market is up or down, there is always profit potential in real estate investing (after all, people always need a place to live). An experienced real estate attorney can provide you with the valuable knowledge to make the best-informed decisions when considering investing in real estate. If you’re considering investing in real estate in Chicago, IL, contact our offices at (708) 442-5599 and speak to an expert real estate attorney today at Schottler & Associates. We have experienced real estate attorneys who are ready to help you with your real estate investments. Click here to learn more or schedule a free 30-minute consultation!