In the last few decades, real estate has become one of the most common investment methods for any age group. Even throughout the recession and downfall of the housing market in the 2000s, real estate investment has remained a popular means of preparing for a comfortable future. But if you’ve never invested in anything before, you may be intimidated by the idea of buying and selling properties. Buying a house is frequently seen as a major life milestone in our culture, so it’s easy to understand how it could be daunting.
But you don’t necessarily have to jump right in to buying and selling houses or commercial buildings. There are some very easy ways to invest in real estate that aren’t quite as overwhelming. For beginners who want simple investment options, or experienced investors who just want new ways to branch out without a lot of effort, here are a few great options:
1. Investment Groups
Real estate investment groups are a great way to learn the ropes before you strike out on your own. If you don’t want to become a landlord, or worry about the paperwork, an investment group is definitely for you. The group (including you) will agree on a specific type of property that you are all interested in, and then the company will buy or build the properties with the money that the investment group provides. The company takes care of all the day-to-day details, and you see a check show up for your part of the rental or sales revenue when due.
This is a safe way to get started with investing while you learn more about what types of properties are the best options. It also allows you to learn from more experienced investors, and to develop mentor relationships.
2. Invest through Crowdfunding
Crowdfunding is still a relatively new idea in the real estate industry, but that doesn’t mean you should avoid it. Over the last year, crowdfunding platforms have distributed more than three billion dollars of real estate investments, up from two billion the year before. Clearly, this is a growing model that investors can take advantage of.
The key benefit of crowdfunding is that an investor doesn’t have to have as large of an investment to get started. Dozens or even hundreds of investors come together with just a few thousand dollars each to invest in large commercial properties that normally would require significant chunks from fewer investors. And crowdfunding allows you to move beyond your local opportunities, and spread your investments out all over the world. Take advantage of the market anywhere, and with less risk.
3. Live-in Flip
You’ve seen the reality shows where a couple buys a home in need of some remodeling and lives in it while they flip it. They end up with a tidy sum after putting some investment dollars and a ton of elbow grease into the place. If you’re a young, single person, a young couple, or a retiree, you are in a unique position where this could actually be a very simple way for you to start investing in real estate. It’ll be easier for you to live in the homes while you remodel them, staying in temporary lodgings between investments, or maintaining a very inexpensive rental home for between investments.
While this isn’t the easiest investment method in terms of how much you have to do, it is the easiest method in terms of getting a foot through the door. Literally anyone can buy a house, learn to fix it up with a lot of YouTube videos and the advice of local experts, and then resell it for a profit. And you may discover a new love of flipping houses along the way.
These three methods offer some great ways to get started in real estate investment. Depending on how involved you want to be, and what your budget is for investment, any of these options could work perfectly for you.