Investing in real estate can be both risky and exciting at the same time. If done right, you can make a fortune out of real estate investment. However, it takes a certain level of expertise, good eye, and wise business decisions to find the best property to invest your time and money in.
If you are an inspiring real estate owner, you would be pleased to know that you could use leverage to buy a property which means that you don’t have to make the full payment for the house at once. Instead, you could pay a small portion of the total cost upfront, and later pay off the rest in instalments.
There are many ways through which you can invest in real estate. In this article, we are going to target the citizens of the Greater Toronto Area and discuss some of the simplest ways involving real estate investment in the GTA.
1. Owning Rental Properties
If you are a creative nerd who likes to renovate things and bring them back to life with your innovative skills, you would enjoy owning rental properties. You can make a regular amount of money by keeping tenants on your property and charging them for living at your place.
This way ensures that you get maximum capital through leverage and has many tax-deductible expenses. I attribute my success to my working mantra… “strategize to maximize” your profits. The downsides include having to manage the tenants, ensuring they don’t damage your property, collecting rent, and if there are any vacant months your income will be reduced.
2. Real Estate Investment Groups (REIGs)
If managing tenants is too tedious for you, you can always opt for Real Estate Investment Groups (REIGs) that frees you from the hassle of actually running your property if you have a plan. What does being a part of an REIG require? It requires copious amounts of capital and access to adequate financing.
So what exactly are REIGs? REIGs are small mutual funds that are directed to invest in rental properties. How REIG works usually is that a company purchases some apartment blocks or studios and the investors in the group can buy these blocks through the company which makes them part of the investment group. The perk is that you don’t actually have to overlook the property and yet you get all the profits of having an investment. It is a great way to generate passive income.
3. Flipping Houses
Flipping houses is a tricky business and is especially meant for those who have significant experience, good judgement, and a great eye for marketing, valuation, and renovation.
It requires someone like me, an award-winning real estate agent to see an undervalued, crumbling property and gauge its potential. Flipping houses require you to purchase a property that is not in the best of states and turn it around to something that people would want to invest in. It requires deep market knowledge and an ability to flip the house and sell it within the first six months along with profit generation.
4. Real Estate Investment Trusts (REITs)
An REIT is a trust which is formed when you utilize investors’ money in order to buy and maintain income properties. If you are looking for regular income, REIT is a good catch for you especially if you are a stock market investor. These stocks are called dividend-paying stocks and are quite reliable.
There are many ways to invest in real estate, you just have to pick the best one for yourself. If you need any help, you can contact me as a real estate investment expert to consult you on how to make your money go further, increase your wealth and devise a real estate plan that will work for you.
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