Beginners Guide to Real Estate Investing

There are several reasons why investing in real estate is a smart financial decision. For starters, real estate tends to appreciate over time.

How to Invest in Real Estate

Two Ways to Invest

Active investments require a hands-on approach to real estate and will require continuous work to generate returns. Passive investments, on the other hand, only require you to provide capital.

Understand Market Conditions

Regardless of whether you are actively or passively investing, make sure you understand the market’s state before diving in.

Types of Real Estate Investments

Real estate investing for beginners can be overwhelming, so understanding the different investment options out there can help you find a path that will best suit your goals.

House Hacking

House hacking is a term for investors who buy a duplex, triplex, or fourplex and then live in one unit while renting out the others.

House-Flipping

There are a plethora of reasons why first-time and seasoned buyers alike might invest in a fixer-upper. These properties are usually outdated at best (and nearly dilapidated at worst) and offer investors access to homes in desirable areas at much lower prices.

Rentals

When it comes to rental properties, investors can choose to invest in long-term or short-term (vacation) rentals.

REITs

If you want to add real estate to your portfolio without actually buying property, you should consider real estate investment trusts or REITs. REITs are companies that own commercial real estate such as office buildings, retail spaces, hotels, and apartments.

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