April 20, 2024
    Real estate has great investment potential, but how can you start? This guide explains the steps of how to start investing in real estate.

    How to Start Investing in Real Estate: The Steps to Take

    If you’re wondering how to start investing in real estate, there’s a variety of ways to get started. You want to find a method that’s worth your money and your time.

    Did you know that some investment trusts are required to pay out 90% of their income to investors? That’s profitable dividend potential for investors.

    So here’s how you can start getting your own real estate returns on investment. 

    Find an Online Crowdfunding Investing Platform

    For many novice investors, online crowdfunding platforms are often the most readily accessible outlet for real estate investments. 

    Crowdfunding investments allow you to invest in a variety of real estate properties, mostly commercial. 

    Investors with a net worth less than $1 million are considered “non-accredited investors.” If you make less than $200,000 a year, you’ll need to find crowdfunding platforms that accept nonaccredited investors.

    Some of the top online crowdfunding platforms include Fundrise and DiversityFund. Both platforms allow you to start investing with just $500. So if you want to learn how to invest in real estate with as little money as possible, these crowdfunding platforms can help you get started. 

    Many platforms allow non-accredited investors to participate in publicly traded real estate investment trusts (REITs).

    Join a Real Estate Investment Trust (REITs)

    Joining a REIT can be different from investing in an online crowdfunding platform that offers REITs.

    These trusts are collectives of investors who pool their money together to invest in residential or commercial property. Then, each investor gets a cut of the rental income each month that tenants pay rent. 

    REITs offer a lot of investment potential without the hassle of becoming a landlord. Investors aren’t responsible for property management.

    Instead, the REIT handles the property officially, while investors simply collect rental income. 

    There are opportunities for just about anyone to join a real estate investment group. You can find investment clubs dedicated to specific demographics (e.g. college students, wealthy investors, average income workers, etc.).

    Finding one can be as simple as searching online for investment groups in your area that you’re eligible for. 

    Rent Out Your Property

    Renting out your property is one way to get hands-on experience with real estate. You can prepare your rented space and promote it on popular rental sites like Airbnb. 

    However, renting out your property means that you’ll become a landlord and assume the responsibilities that come with the title. 

    If you need to find investment properties to manage, considering choosing a real estate agent to help you. In the Florida area, Alex Plotkin Real Estate is a trusted name that can help advisor your efforts. 

    If you want to build your own property from raw land but you don’t have the cash, you can attract investors to fund the project. Then, start renting out the property to tenants. 

    Learning how to manage your own space opens up future opportunities to manage larger property investments like residential group housing. 

    Know How to Start Investing in Real Estate

    When you’re learning how to start investing in real estate, you should always understand the risks and the rewards. However, you don’t have to learn on your own. 

    There are wealth experts like financial advisors who specialize in real estate investments. It may be worth finding one in your area to guide your process. 

    Looking for more money tips? Then check out the rest of our blog now.

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