South Windsor, Connecticut 06074 – March 25, 2022 —
At some point in your life you may have experienced dealing with a landlord or management company. At the time you probably don’t dream of ever being a landlord. I mean who wants to field calls about oversize bugs, overflowing toilets, broken appliances, and other home issues that arise randomly. This probably doesn’t seem like the most glamorous job right? Well it can be, when done right. Investing in real estate has it some perks! It can help diversify your existing investment portfolio and be an additional income stream. And many of the best real estate investments don’t require showing up at a tenant’s home every beck and call. So if this can be a lucrative business what’s the issue?
Many New investors don’t know where or how to invest in real estate.
Here are some of the best ways to make money in real estate: Buy REITs (real estate investment trusts) REITs allow you to invest in real estate without the physical real estate. Often compared to mutual funds, they’re companies that own commercial real estate such as office buildings, retail spaces, apartments and hotels. REITs tend to pay high dividends, which makes them a common investment in retirement. Investors who don’t need or want the regular income can automatically reinvest those dividends to grow their investment further. The type of REIT you purchase can be a big factor in the amount of risk you’re taking on, as non-traded REITs aren’t easily sold and might be hard to value.
New investors should generally stick to publicly traded REITs, which you can purchase through brokerage firms. Use an online real estate investing platform There are platforms out there that can connect real estate developers to investors who want to finance projects, either through debt or equity. Investors hope to receive monthly or quarterly distributions in exchange for taking on a significant amount of risk and paying a fee to the platform. Like many real estate investments, these are speculative and illiquid — you can’t easily unload them the way you can trade a stock.
Now this means that you need money in order to make money. Many of these platforms are open only to accredited investors, defined by the Securities and Exchange Commission as people who’ve earned income of more than $200,000 ($300,000 with a spouse) in each of the last two years or have a net worth of $1 million or more, not including a primary residence. Invest in Rental Properties You can enter the rental investment market by house hacking. This essentially means that you’re occupying your investment property, either by renting out rooms or by renting out units in multi-unit building. house hacking lets investors buy a property with up to four units and still qualify for a residential loan. Of course, you can also buy and rent out an entire investment property.
Find one with combined expenses lower than the amount you can charge in rent. And if you don’t want to be the person who shows up with a tool belt to fix a leak — or even the person who calls that person — you’ll also need to pay a property manager. Flipping Investment Properties Do you want to be the next Chip and Joanna Gaines? Do you want to live out your HGTV dreams? Well you can invest in an underpriced home in need of a little love, renovate it as inexpensively as possible and then resell it for a profit. This is called House Flipping, and this strategy takes a bit more work than they show on TV.
There is a bigger element of risk, because so much of the math behind flipping requires a very accurate estimate of how much repairs are going to cost, which is not an easy thing to do and can become overwhelming fast. The other risk of flipping is that the longer you hold the property, the less money you make because you’re paying a mortgage without bringing in any income. You can lower that risk by living in the house as you fix it up. This works as long as most of the updates are cosmetic and you don’t mind a little dust.
About Us: If you are currently trying to sell your home and are unable to find a buyer, your search is over. We buy houses in Connecticut that are unwanted by their owners in all manner of condition for a fair all-cash offer.
Name: Steve Michael
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Address: 424 Judson Ave, Mystic, CT 06355
Phone: (860) 415-0340
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