The Growing Popularity Of Real Estate Investing
The real estate industry in its entirety has gained much-deserved popularity and appeal as of lately, and for appropriate rationales. Real estate is simply a property which consists of buildings or land, while estate investing encompasses the purchasing, ownership, management and rental, or selling of physical properties for a profit.
Although generating a profit from real estate investing is not necessarily effortless, it is palpably achievable with determination and dedication. According to the National Association of Realtors, over seven million investors in the United States are seeking to purchase a property within the next twelve months, with that number expected to grow in the upcoming years.
Real property investing can be an extremely profitable industry if executed efficiently, as the industry created the most millionaires in the year 2017. Given that an individual seeking to begin investing in real property does not need to possess a college degree, many individuals have begun noticing the potential for profit generation with little to no experience. Below are two other reasons as to why this industry has gained much-deserved attention as of lately.
As stated, an individual who is seeking to begin investing in real property does not need to have a college degree or even a high school diploma. Some aspects of this industry don’t even require a potential investor to have a brokers license. Consequently, it is not as difficult as it may seem to get started.
The most common concern for the majority of potential investors is the belief that they must have a significant amount of capital saved up in order to purchase a home in cash and flipping it for a profit. Although this can be advantageous, there are numerous financing options available and exploiting them is perhaps the secret for potential success in the industry.
In order to get started in investing in real property with little to no money upfront, an individual can simply put down as little as 10-20% of the property’s cost, and apply for a low-interest mortgage loan, varying by loan amount and credit score, for the remaining amount.
If an individual is situation makes a mortgage loan unachievable, there are other options available such as non-recourse loans or even personal loans. Being knowledgeable of the available financing options is vital to enhancing the chances of success in this industry.
Flexible Schedules and Time Commitment
Depending on the style of investment an investor elects to exercise, different time commitments are required for different circumstances. For an example, those investors who purchase a property that needs some work, also referred to as fix-and-flip, will generally make their investment a full-time job since they often act as the property managers.
On the other hand, an investor who elects to employ a turnkey style of investing can do so on the side, often deeming their investment as a form of passive income. This is due to the fact that turnkey investing consists of purchasing a fully-renovated property that does not require any additional maintenance or renovation and immediately renting it out to tenants.
With this style of investing, the investor can enjoy the benefits of generating profits with little to no work upfront, also known as passive income. The rent payments that are made by the tenants will contribute to the mortgage loan amount on the home and eventually pay for the home completely.
This leaves the investor with a consistently recurring income and a completely paid off property in a few years. This is also one of the most popular forms of real property investing. This turnkey style investor can exercise this investment type on the side and collect payments from tenants each month for a steady profit.
In this industry, investors can buy a home, sell a home or rent the home out to tenants. The majority of investors succeed in this industry by understanding how to properly secure a mortgage loan, understanding how the financing works and having substantial comprehension of the market.
For more information about investing in real estate, contact your local trusted Realtor for assistance.