Real estate is possibly one of the best investments you can make. Real estate almost always appreciates over time and rarely depreciates for long. Unlike buying stocks and bonds, however, it is difficult to invest a small amount of money in real estate. This doesn't mean, however, that you can't start small, it just means that "small" is sometimes a bit larger when it comes to real estate than other types of investing. Here are 3 ways to get started investing in real estate.
How to Start Investing in Real Estate by Eugene Schneur
1. How to Start Investing in Real Estate
Real estate is possibly one of the best investments you can make. Real estate almost always appreciates
over time and rarely depreciates for long. Unlike buying stocks and bonds, however, it is difficult to invest
a small amount of money in real estate. This doesn't mean, however, that you can't start small, it just
means that "small" is sometimes a bit larger when it comes to real estate than other types of investing.
Here are 3 ways to get started investing in real estate.
1. Start where you live
Many times homeowners need to move for some reason, but aren't able to sell their house. If it sits on the
market for long enough, they may come to a point where they can no longer afford two mortgages, so
they need to do something to generate income on the home that isn't selling. While rent-to-own homes
are not ideal for the seller, they can be a great option for buyers because they allow you to build up equity
in a home while you are living in it. If you can't come up with the money for a down payment on a home or
property, look for a rent-to-own property.
2. Partner up
While you may not be able to come up with $50,000 or more to invest in even the most modest real
estate property, you might be able to get some family and friends to invest with you. It might be just
buying a piece of land that you might live on in a trailer while you are building a home on it or it might be
an old strip mall that you convert into a number of offices. Whatever it is, there are plenty of fixer-uppers
on the market at any time and you can make a profit if you can get investors.
3. Buy multi-family
If you have the money to make a down payment on a home, you can make money by buying a home that
someone else can also live in to help pay the mortgage payment. Another way of doing this, of course is
to buy a large home and have several renter room-mates, but it's probably better for your own peace of
mind to buy a home that is already divided into two or three homes. That way, you get your own place
and your own space, but still get financial help paying the mortgage.
Eugene Schneur is a real estate mogul and the co-founder of Omni New York.