Through real estate investing a person can make ample profit on their real estate investment. Edmonton Realtors know all about what makes a great investment, and all the ways in which you can make the greatest financial gain! If you’re a first time investor or simply looking to expand your portfolio, here are 5 different ways you can invest in real estate today!
Try a REIT.
One way to invest in real estate is by purchasing real estate investment trusts (REITs). Through an REIT, a person can channel their money into real estate without actually owning the physical property. Similar to a stock, they may be privately or publicly traded on an exchange. First time investors should be guided towards publicly traded REITs available for purchase through an online broker.
With the help of a REIT, a person can direct money into a property that wouldn’t normally be buyable without financial aid or great connections. For instance: malls, commercial office buildings, shopping centers etc. An REIT is a great option for those retired, as they are low maintenance and have high dividends. With a track record of success, even those with limited funding can buy into REITs. It should be noted that financial risk will increase or decrease depending on the type of REIT you purchase.
Real Estate Investment Groups.
A real estate investment group or REIG, is very similar to a REIT. If you want to invest in real estate, but aren’t keen on management and maintenance, REIGs are the way to go. Enjoy all the benefits of owning a property without the hassle of tenants and everything else that goes along with owning real estate.
When a company buys a property or develops a building, they will typically allow investors to purchase units within the building; thereby joining an REIG. Whoever owns the property will look after maintenance and tenants. Because of this, they take a cut of the rent paid. If a unit becomes vacant, many owners have plans in place to avoid turbulence and ensure revenue when a unit isn’t tenanted.
Edmonton Realtors Will Help You Find Rental Properties.
If you’d prefer to be the owner of the physical real estate, a rental property might be right for you. Alternative to REIGs and REITs, rental properties are much more participatory and require a great deal of time. Although you get to have full ownership of the property, it doesn’t come without hard work. As the sole proprietor, you must maintain the property, interview tenants, cover vacancies, deal with complaints, and much more. During slow months, it may be expensive to own this property type. However, there is potential for increased property value and a fairly steady income. Moreover, some of the costs associated with conducting rentals may be tax-deductible.
Flip a Home With Edmonton Realtors.
When it comes to flipping a home, investors look for a low valued property with the potential for a greater profit. It is a speculative investment that can quickly go south if the home is not finished and sold promptly. If the home does not get bought or completed, the owner will be left to pay another mortgage with no extra cash flow.
Renovating a home is a big process – especially when you’re in a time crunch. As a home flipper, the ideal turnaround time is six months. If you are an ex-construction worker or have worked in a similar occupation, your expertise will come in handy. Being able to accurately estimate cost and source materials at a reasonable price is essential in successfully flipping a home. Good design and marketing skills will also be of great use.
Owning a property in a tourism rich city can be a gold-mine for short-term rentals. However, having several unknown guests can present issues. Be sure to take preventative measures and vet each visitor before accommodating their stay. It is also important to pay mind to guidelines and regulations surrounding short-term rentals in your area. Check with your Edmonton Realtor if you are unsure about the rules involved with conducting short-term rentals. This type of investment is a great way to make an additional income during peak tourism seasons.
Contact us at RE/MAX Elite today to learn more about real estate investing. Start building your investment portfolio today and contact one of our awesome Edmonton Realtors! We look forward to helping you make a profitable investment. Check out our Facebook for the latest updates and insider info!