Getting Started With Investing in Real Estate
Commercial real estate investing is a very profitable business but it takes brains and ingenuity to get started. After all, not many people have enough capital lying around to purchase a business complex or apartment building on their own. If you’re interested in real estate investing, there are simple practices you can put to use to help you overcome the hurdle of producing capital so that you can start gaining an income today.
For starters, you can start by purchasing a piece of property and renting it out to tenants. This is a great way to get your foot in the door. Simply take out a home loan or commercial business loan—whichever your credit score will allow—fix it up if necessary and start renting. This is a great way to earn a passive income while working your day job. With the help of both your rental income and the income for your job, you should be able to quickly save enough to start purchasing more properties to rent out, until you have enough to buy commercial real estate outright.
Another option you have is to flip properties. You see it all over the television these days: real estate traders who purchase a property, fix it up and then sell it for more than what they bought it for. This is a great way to earn money quickly, but it’s risky, and requires a significant amount of upfront capital. However, you can always work with investors to obtain the capital you need to purchase and fix up a property, and then pay them back when you sell it.
Finally, you can always work with a real estate investment group. Unlike private lenders who lend money outright to individuals trying to make a living flipping properties, a real estate investment group buys or builds a complex and then lets investors buy units or entire complexes through them. While the investor actually owns the property, the investment group manages it, thereby eliminating the need for the investor to actually put forth any landlord-type efforts. This is the perfect option for someone who wants the profit of being a commercial real estate investor but who does not want the hassle that comes with being a landlord. However, in exchange for their maintenance work, the company takes a percentage of the income.
Real estate investing is a great way to earn a large income, but in order to get started, you have to know where and to whom to turn. If you’re hoping to make a living in commercial real estate, use the above tips to get started!