Real estate investing can make you a fortune, but there's nothing simple about it.
The global real estate investment market is worth nearly $10 trillion with no signs of slowing down. There's never been a better time to start an investment property portfolio, but that doesn't mean your investments will automatically make you money.
In this post, we're going to tell you how to start real estate investing the right way. If you've got the capital to get involved, then keep reading and we'll help you ensure that your portfolio grows year after year.
Purchase Rental Properties
A great way to start out in real estate investing is to invest in rental property. Having a second home where you can earn passive income is one of the best ways to bring in income that you can use to grow your portfolio.
Learning how to invest in rental housing isn't the easiest thing in the world. If you don't have the time to do it yourself, hiring a great property management service to help you find tenants, maintain the property, and deal with rent collection will make it a breeze.
In many ways, the opposite of rental properties is real estate investment trusts (REITs). These are funds that you actually purchase and trade shares from, so you won't actually have any involvement in a property.
When you invest in a REIT, you have to do your research into its leadership to determine if they're in line with your thinking. Because they have to be transparent to their investors, REITs are perfect for beginner property investors to get started on a portfolio.
If you're good with your hands, another great way to get into real estate investing is by flipping houses. Flipping houses won't directly grow or diversify your investment portfolio, but they can inject your portfolio with some serious cash.
Commercial Real Estate
Investing in commercial real estate provides you with a wide range of opportunities. You might own and rent a small storage facility or a large building with multiple rental units. Different properties have different demands, but commercial property has more value and earns more rent.
You can't talk about commercial property investing without considering the risk involved. As we saw during the COVID-19 pandemic, you can own a commercial property that ends up vacant for a long time.
It can be really beneficial to have a property manager for your commercial properties as well. They can manage the day-to-day operations of your building, dealing with the renters, who tend to be more demanding than residential renters.
Start Real Estate Investing ASAP
Building a good property investment portfolio can start with any of these investment types. Real estate investing is a safe, yet lucrative place to put your money, but diversity is important. Once you hit on something good, don't be afraid to expand your portfolio, as that's when you'll see real growth.
If you're looking for the best property manager for your investment properties, contact us at Folsom Property Management. We'll maintain your Folsom, California properties, collect rent, find tenants, and report finances, among other things. You focus on your investment portfolio and we'll focus on your investments.