Real estate is a favorite investment strategy for a lot of Americans. Indeed, unlike many other assets in an investment portfolio, properties are tangible and real assets. It’s easy to improve the value of your properties as it is something you can touch and see.
There are many reasons to buy properties from an investment perspective. Indeed, the value of properties is constantly rising to reflect the economic situation. In other words, if you bought a property a few years ago, it is likely to sell at a much higher price tag today. You can also add improvement works to increase the intrinsic value of the house, making it more valuable for resale. But even if you struggle to purchase a house, you can still look at real estate investment programs that let you own a real estate share and receive dividends from it. So, you don’t have to break the bank to make your investment valuable.
But there are many more ways to invest in real estate and create an advantage.
Don’t Be the Buyer, Be the Agent
Working as a realtor can be a profitable career move as you can receive generous commissions when you manage the sale of expensive properties. Launching your own business as a realtor can be tricky, as it takes time to attract new clients. However, you can consider a franchise program such as Franchise Direct that will provide you with the business plan and equipment you need to get started. As the franchise will be part of a bigger brand, you can benefit from their marketing activities and their client database to establish your presence in your local market.
As a specialist realtor, such as someone who works only on high-value properties, there is a lot of money that comes through your commission.
Just Rent a Room
Airbnb is revolutionizing the property market, enabling small landlords to stay in charge of their property rentals. The Airbnb community is organized to deliver the support new landlords need to make their properties visible and attractive. For instance, if you wish to list a room in your home, you can establish clear house rules and create a calendar for bookings so tenants only come when you’re ready for them. Room rentals can be a profitable way of creating a passive income for your household.
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Additionally, you can practice your landlord skills with a shared home, and when you are more confident, you can rent out your property while you are away.
Flip Properties
House flipping is a popular real estate investment strategy that consists in:
- purchasing a property at a low cost
- making the necessary renovation and improvement works
- selling for a profit
House flipping will require immediate access to financing support, such as savings, so you can go through the purchase and improvement steps rapidly. Having to apply for a loan will reduce the flipping profit.
Read: 3 Reasons Real Estate Is Such a Worthwhile Investment
Successful property flippers tend to buy and sell properties within the same year, earning a profit of $20,000 to $40,000 on average on each sale. It can be a highly rewarding strategy when you get the hang of it.
Investing in real estate can serve a variety of purposes, ranging from a new career move to a secondary income for the household. Not all real estate investment strategies are designed to increase your wealth. Some may provide you with more budget stability or new opportunities for personal growth.
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