How To Invest In Real Estate: 5 Lucrative Ways To Get Started

If you are thinking of investing your money in an alternative investment route, then it is likely that you have thought about real estate. Property investment is one of the most lucrative forms of investment, and it is also one of the safest too. There are tons of benefits of investing in real estate, and lots of different ways to get started too. 

In this guide, we’re taking a look at 5 of the most lucrative ways to get started in real estate investment. So, if you are thinking of getting started in this industry, you are in the right place. 

Keep on reading to find out how to get started in real estate investment!

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1. Rent Out a Spare Room

One of the most accessible routes to real estate investment is renting out spare space that you have. This can come in a variety of different ways, including renting out your spare room as a flat share, renting out your garage, and even renting out a parking space outside your property. You could even rent out storage space if you wanted to, these are all forms of real estate investment. 

If you are just getting started in real estate and renting, this really is the best option for you. Renting out spare space allows you to dip your toe in the water of real estate investment, and really decide if you want to go down this avenue. 

Renting out a spare room can be a bit of a win-win situation. You can make some money, reduce your mortgage payments while also using spare space in your home. It can also allow you to decide if property investment is for you, which is why it is a great way to get started!

2. Start a Rental Portfolio

You could always take things one step further, and set up your own rental portfolio. This is one of the most popular routes for property investors, and that is because you can make a hefty amount of money through renting out properties. 

There are lots of different types of properties that you can add to your rental portfolio. You could convert a house into student housing, and rent the room to multiple students to increase your ROI (return on investment). Alternatively, you could invest solely in storage solutions, and rent out space to people looking to store their things in a safe space. Alternatively, you could go down the traditional route and purchase multiple properties to rent out instead. 

Rental portfolios come with a huge amount of benefits, and they can be really enjoyable too. You can have a personal relationship with your tenants, and you can make a difference in their life by doing a good job at maintaining the property. Rental portfolios do take some work, but they are definitely worth it!

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3. Online Real Estate Platforms

Alternatively, if you don’t want to get your hands dirty, then you could invest in property through online real estate platforms instead. This investment route is ideal for people who want a hassle-free relationship with the real estate that they invest in. 

When you invest in real estate in this manner, you essentially take on a high level of risk in return for monthly or quarterly distributions of profit. This is a pretty complex type of real estate investment, and it isn’t for everyone. But it is a great way to invest in real estate without a lot of the hard work associated with this type of investment. 

A lot of online real estate platforms work in a similar manner to crowdfunding platforms. They will typically require a hefty investment, but most of the time, the risk associated with this type of real estate investment will be reflected in the profit that you generate at the end. 

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4. Join a Real Estate Investing Group

Similarly, you could also invest in property in a different way by joining a real estate investing group. This is another popular method among those who don’t want to get their hands dirty while investing in property. This route allows you to take a step back from the property while also being invested in it. 

Real estate investing groups are very similar to small mutual funds. These funds are then used to purchase and develop properties. A lot of the time, the development properties will consist of condos, apartment blocks, and larger projects that will generate bigger amounts of profit. 

The entire portfolio will then be split between those who have invested, and they can do with their properties as they please. So, for example, the entire apartment block may be divided equally between the different investors. However, the overall maintenance of the property, and advertising for tenants will fall to the real estate investing group. It can get a little confusing, but this is an excellent investment route for those interested in property.

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5. Flip Houses

Finally, flipping houses is an excellent opportunity for anybody who wants to get started in real estate investment. Flipping houses is incredibly enjoyable, and it is the perfect option for anybody who really wants to get stuck in and get their hands dirty. 

Flipping houses is a lot of hard work, but it is totally worth it. Essentially, this requires you to purchase houses at a low value, then do renovation work that will enable you to increase the value of the house and make a decent profit. It can be incredibly enjoyable, and very rewarding – not just in the financial sense. 

Flipping houses is a form of real estate investment that is becoming increasingly popular, and if you are someone who works in a trade, then this is probably the best form of real estate investing for you! 

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Summary

In short, there are lots of different ways to get involved in real estate investment. From renting out spare space to creating a rental portfolio, or getting involved in a real estate investment group, there are plenty of opportunities available. Find out more about them in the guide above. 

Your pay stubs will be a great resource to find out figures needed to calculate budgets etc.

Thank you for reading!