Everywhere you look, it seems as though things are becoming more expensive. This unfortunate truth may have you considering additional ways to generate more income. There are many ways to go about it, but real estate is one of the most effective methods.
There are several methods to generate income from real estate, but one of the simplest methods is to become a landlord. If you're worried about the cost of purchasing a property, have no fear; there are several cost-effective ways to invest in real estate. Here are some ways you can begin your journey as a landlord.
Use Real Estate Crowdfunding
Real estate crowdfunding is a method of investing in real estate through a group. You can purchase shares of property alongside other investors.
Real estate investment trusts (REITs) have been a longstanding investment tool for seasoned investors. However, REITs have middlemen that enact the transaction on your behalf, which means they take a commission when they handle the transaction. There are also other fees when you use a REIT.
However, there are real estate crowdfunding platforms that make investing easy for beginners. The platforms cut out the middlemen and give investors a hands-on experience with their investment. As a result, there are fewer fees, which means higher returns.
You Can Be a Local or Long Distance Landlord
Investing in properties in your local area makes them easier to manage. You can check on the property when necessary and handle problems much faster.
Investing in long-distance properties has its appeal too. Metropolitan areas have more expensive real estate, which means it can be harder to purchase a property. However, you can make your money go further when you invest in properties in smaller communities.
Of course, when you invest long-distance, it won't always be feasible to check on your property whenever you feel like it. That's why you can hire a property management firm to act in your stead.
Property managers act in your stead and handle the day-to-day supervision of your property. Local investors can also use a management firm if they want to invest but don't know how to handle the management of real estate.
What Do You Want Out of Your Property?
Before you commit to a location to invest in, you should evaluate what you want to get out of your investment. Are you looking for a steady cash flow or a steady cash flow and appreciation?
Appreciation is when the value of something increases over time. Metropolitan areas like New York City, DC, and Los Angeles tend to have markets that appreciate over time. Properties in small towns tend to stay at the same value over time.
If you want to sell a property for more money than when you purchased it, you should think about investing in properties where the real estate will appreciate.
Rent, Sell, and Manage Properties
If you have a little extra money, you can take your first steps as a landlord. You can use crowdfunding platforms to purchase a share of a property to make extra money.
Before you purchase property, think about what you want out of it. If you decide to purchase property far from you, think about hiring a property management company to manage it for you.
At Atlanta Property Management, we can help facilitate the rental, selling, and management of your property. If you want to take the hassle out of real estate, contact us today to see how we can help you.
