Real estate investing is one of the more profitable fields of investing business – if you know how to do it the right way. Below are some of the best real estate investments for the next year.
Many millennials fear stepping into real estate investing, thinking they need a lot of money beforehand. Truth is, there are many affordable options for anyone looking to make their first real estate investments in Milwaukee. If you know where to place your money, you can expect a huge return over time. Real estate is a great way to provide passive income. In other words, after you’ve put in some work, you can just sit, relax, and wait for money to come to you.
If all of this sounds interesting to you, Sparks Property Investors LLC has a book prepared with all the necessary information about real estate investing. You can download it for free on this link.
The most important thing in any investing business is diversification. You should never out all of your eggs in one basket. Having a portfolio with various investment properties is the best way to secure your profit. So, what are the best real estate investments for beginners?
Rental property is the most common way of earning income when you’re an investor. Having a turnkey rental property is one of the best investments you can make. A turnkey investment is a rehabbed property that is ready for its new tenants. There are many advantages for buying rental as a real estate investment. Purchasing rental properties in the city center is expensive, but if you invest in suburbs or rural areas you can get some houses for much cheaper. You’ll probably still need to pay a 25% downpayment, but there are some low-cost options, and on some occasions you might even purchase your first investment without any cash involved. If you’re looking for a way to make a fine passive profit, investing in turnkey rental properties is the way to go!
If you’re a millennial that wants to start with real estate investments but fears making such a huge transaction, you might want to invest in Airbnb. To be a member of this online platform you don’t even need to own a house. There is a method known as master leasing, and it requires renting and furnishing a house or an apartment, then further renting it out on Airbnb for a bigger amount. This isn’t as profitable as renting your own apartment, but it’s less risky. Keep in mind that the amount of Airbnb rents has gone down due to the Covid-19 pandemic, however everything seems to slowly be getting back to normal as the number of renters rises.
You all probably already know that investing in commercial real estate can be rather profitable. However, the money required for this real estate investment is really high, which is why many millennials don’t even want to dare investing in it. However, crowdfunding is a good way to avoid these high costs. In crowdfunding, you will raise money from other investors in exchange for an equity interest in that property. Of course, there are some flaws in this method, as well. Most importantly, this type of investments isn’t as liquid as some others. Still, if done the right way, it can be worth it.
Single-Family Home in the Suburbs
Single-family home demand is currently on the rise. With the threat of diseases and viruses such as Covid-19 on the rise, more and more people are looking to get away from the crowd. This makes single-family homes in the suburbs some of the smartest real estate investments you can make right now. They are typically affordable, and you can rent or flip them at a decent amount of profit. Sure, you’ll likely need to afford some downpayment, but this shouldn’t be a high amount due to the size and location of these homes.
REITs are companies that own, manage, or operate real estate assets such as apartment building or commercial real estate. When working with them, you can have access to various mutual funds or ETFs for making real estate investments in no time. Some of these funds don’t require any minimum to invest.