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How to Start Investing in Real Estate: Your Options Explained

How to Start Investing in Real Estate: Your Options Explained

Did you know that the housing market is currently valued at $33.6 trillion? Wouldn't it be nice if you could tap into that wealth? Even if it is a small piece?

In this guide, we will discuss what your options are in real estate investing and show you a few tips and tricks of the industry.

Are you ready to learn how to start investing in real estate? Keep reading to find out!

Buying Real Estate: Where to Start

The first step is something that a large portion of the population already does; owning your own home! If you are not already a homeowner, this is a good place to start

A house typically increases in value over time; this is especially true when you make valuable upgrades. For example, adding a second bathroom, increasing the bedrooms, and upgrading the kitchen are all excellent ways to increase the value of your home. 

Not only will you live in a home that is your own, but once you decide to sell, you will also likely receive a healthy return on investment, also called ROI. 

Investing for Beginners: Owning a Rental Property

Once you own your own home, you can start looking at owning a rental property. This means that you buy real estate and rent it out to a tenant. This does require some work and research on your part, but it can give you a high passive income as well.

As a landlord, you are still responsible for the property. Make sure you read up on your local laws and regulations and know what your rights and the tenants' rights are. 

Investing Tips: Expanding Your Portfolio

Owning a home or rental property is not the only way to create passive income. If you don't have enough funds for a downpayment right away, you can diversify your portfolio by investing in REITs, or real estate investment trusts. 

REITs function much like stocks. You can buy a portion of a real estate property as low as $20-$30. There are some key advantages to REITs but also some disadvantages as well.

REITs fluctuate just like the stock market, so it is likely that they will decline at some point. However, you can liquidate your assets immediately as long as the market is open. 

Another way you can invest in real estate is to flip a property. If you have a small downpayment saved, you can start by buying a fixer-upper and upgrading the house as funds start trickling. Once the house is ready for resale, you'll see that you can get a large ROI.

How to Start Investing in Real Estate: Start Today!

If you are currently a tenant yourself, you may want to start looking at buying a house. Now that you know how to start investing in real estate, you can look at the different houses in your area. 

If you are in the Oxford, MS area, let us help you find the perfect investment opportunity for you!