Gain Financial Freedom with Real Estate Investing
Anyone and everyone seeking financial security and freedom is familiar with the term real estate investing. Given how a shelter is one of our primary needs as a human, it naturally makes sense to tie in homeownership, renting, and real estate in a nice, bow-tie bundle. While it sounds simple, there’s a lot that goes into real estate investing and a wide range of opportunities, three of which we’ll cover next.
Popularized by the hit TV show HGTV, the fix-and-flip real estate culture is in full spring. While the shows make it look easy, there’s more to home flipping than many amateurs anticipate. Apart from an alarming amount of effort, home flippers need to know the local real estate market, construction codes, and government requirements. For those of you who don’t know what home flipping entails, it essentially means buying a rundown residential property and selling it for a profit after you’ve made the necessary repairs and renovations.
2. Rental Properties
Rentals properties are one of the most lucrative and diverse forms of real estate investing. Some of the most popular rental property types include residential, student, multi-unit, commercial, and vacation. When embarking with rental properties, make sure you possess a firm grasp of your targeted real estate market.
3. REIT Investing
Suppose you don’t want to go through learning the ins-and-outs of real estate investing and want to save yourself a lot of sweat; consider investing in REITs (real estate investment trusts). Here’s how REITs work:
- An investor’s funds are pooled with other investors’ funds to buy real estate assets or a portfolio of commercial properties. Consider REITs like a mutual fund for investors diving into real estate.
Some REITs are tradable on the stock market, presenting passive income opportunities in dividends and traditional buy-and-hold ROI.
Given how real estate is an essential asset for humanity and global economies, there is no doubt that real estate investing will be around for decades to follow. Those who are attracted to the benefits of real estate investing but don’t want to get involved with the building are best off with REITs and real estate stock trading. In contrast, those committed to the entire process have immense opportunities with fix-and-flip and rental properties.