How To Create Wealth Investing in Real Estate

What Are The Best Ways To Create Wealth Investing in Real Estate?

Real estate investment is not only lucrative but also highly satisfying. Even in the midst of the COVID-19 pandemic, the real estate market has managed to stay afloat. This stability and growth is a clear indication that the sector is doing well and a worthy investment option. However, real estate investment is not one of the get-rich-fast schemes. You need to ensure that you do everything right from the very word go when diving into this popular property venture. 

There is a myriad of ways in which you can make a killing in the real estate industry. Becoming wealthy from the venture is no longer rocket science, but most of those flourishing in the arena are usually hesitant to share their success secrets. Fortunately, secrets rarely maintain their status quo forever. In the next couple of minutes here, you’re going to discover several ways that you can follow to create wealth investing in real estate.

Residential Rentals 

To start with, residential real estate investment is among the options with which successful and savvy investors don’t go wrong. As long as you follow the right property approvals and ensure the property’s location is strategic, you stand to reap big from the investment. This is because shelter is a basic need. Even when the economy is at its worst, everyone needs somewhere to call home. Fortunately, or unfortunately, not everyone can afford to be a homeowner. In any country, residential property tenants account for a significant percentage of its population. For instance, a recent Statista Global Consumer Survey report shows that 44% of the UK respondents rent their current accommodation. In the U.S, Germany and Switzerland, the figure stood at 37%, 64% and 68%, respectively, according to the report. The statistics are a clear indication that there’s a remarkable demand for residential properties. You can opt to build or buy single-family homes, condominiums, townhomes, or even flats for renting out, depending on the demographics of your prospective tenants. Any of the options are normally easy to finance, rent out or sell. 

Purchasing Real Estate Investment Trusts

Real Estate Investment Trusts, popularly known as REITs, refer to companies that allow entities to become real estate investors without physical real estate portfolios. A REIT owns, manages, or finances properties for income generation and is publicly traded, just like stocks. So, when you buy REITs, you stand to earn dividends from their real estate investments. This is a good deal if you want a highly liquid real estate investment because you can cash out your investment any time you wish by selling your share. Have you ever dreamt of being part of mega nonresidential investment despite your constrained capital? If you’ve said yes, then REITs could be the bridge to the realization of your dream. 

House Flipping 

House flipping is another option for creating wealth in real estate. This form of investment involves buying underpriced homes, renovating them, and then offloading them later at a higher price for a profit. Foreclosures and old homes are among the most flipped forms of real estate because of their affordability to many individual investors. Better still, there a variety of flipping options, including wholesaling, that make it possible for an investor to flip a property without any down payment. However, this is not a walk in the park as it might seem to sound, as an investor might end up spending too much beyond their expectations, especially when the right expertise and guidance are not involved. 

Short Sales

Short sales are also lawful strategies for making quick profits in real estate. A short sale arises when a homeowner undergoing financial distress, thus unable to pay off their mortgage premiums, decides to sell their property at a price that is below the cumulative amount of the outstanding mortgage payment. The entire proceeds of the transaction are taken by the mortgage lender, and the property’s ownership is transferred to the new investor. The price at which the investor buys such property is normally lower as compared to the amount they’d have spent acquiring the property without the special arrangement. However, the buyer needs do to a comprehensive cost calculation from the very word go to ensure the property will bring in profit upon resale.   

Vacation Rentals 

People love travelling far and wide. However, they don’t carry their homes with them. This is where vacation rental properties come in handy. Places that experience high tourist traffic are normally dominated by vacation rentals to cater to the accommodation needs of the visitors. If one has an idle house in such vicinities, they can list it on websites that primarily market homestays for vacation rentals. Alternatively, one can purchase or build a home specifically for vacay rentals or network with the existing homeowners to connect them with the holiday enthusiasts looking for cosy accommodation within their localities. Interestingly, lots of property management companies that deal with vacation rentals do not own the properties they manage. Their work is to act as intermediaries between the real property owners and the tourists, ensuring that the expectations of both parties are met. 

There are many ways in which real estate can generate wealth. However, it is crucial for investors, especially those who are new in the venture, to ensure that they have their calculations right and operate with the law all the time. With the help of Mortimer’s International, an investor can make informed and profitable real estate investment decisions concerning an apartment, a piece of land, a house or even a commercial property, even if they’re green in the sector. The success is a result of the consultancy and the full-service assistance that the firm offers at every step of the way, from property search and acquisition to management.  Contact us now.