Daniel Stewart

Everything You Need to Know About Investing in Real Estate

Getting ready to invest in real estate but still on the fence about it? Here are the basics of what you need to know to jump in and establish a successful portfolio of real estate investments.

Compared to other types of investments, real estate is safe and profitable.

The real estate market is much less volatile than others, and unlike with stocks, if you do it right, you can still have great success even when the economy isn't at its best.

There are ways to get into real estate without having to buy your own property.

If you're not interested in the hands-on management aspect but you still want to invest in real estate, there are lots of great options for you. For example, crowd funding, REITs (real estate investment trusts) and RELPs (real estate limited partnerships) may be a better choice for you.

• A RELP allows you to merge your funds with other investors' funds to buy, lease, develop and sell properties that would otherwise be difficult to afford or manage on your own.

• REITs are companies that own, operate or finance properties and real estate ventures. You can invest in a REIT, and many are publicly traded, which makes it even easier.

• Real estate crowd funding is a method enterprises use to raise money from large groups of individuals. Most of these online platforms are reserved for accredited investors, but you can get in through a less exclusive online platform for as little as $500.

You have more leverage in real estate.

Unlike with many other types of investments, real estate gives you leverage. For example, in some areas of the country, you might be able to put down as little as 10% or even 5% to control the entire property and the equity it holds. Despite only having to pay a small amount of the total value, you still get the benefit of controlling the asset. Comparatively, with stocks, you have to pay the entire value of the stock up front (unless you are buying on margin).

Ready to invest in real estate? Work with a real estate investment mentor.

Breaking into the real estate market isn't really as complex and difficult as it may initially seem. However, if you don't have any industry experience, it's best to work with a real estate investment coach or mentor. These individuals have years of success and experience in the real estate industry and can help guide you based on your individual circumstances and goals.

Author Resource:-

Daniel Stewart advises people about real estate, property investment, property management and affordable housing schemes. You can find his thoughts at apartment investment blog.