Real estate investing sounds like the rich and famous do between yacht trips. But truth be told, anyone can get into the game even without bottomless pockets or a knack for fixing leaky faucets at midnight. Knowing your options and how much time, money, and energy you’re ready to put in is key.
If you’re curious about dipping your toes into real estate without turning into the next DIY disaster story, these five strategies can help you start investing, and no hammer is required. And don’t worry, if you’re not keen on midnight maintenance calls, property managers can save your sanity and schedule.
Invest in REITs (Real Estate Investment Trusts)
Think of REITs as the snack-sized version of real estate investing. You get a piece of the property without ever setting foot in an open house. REITs own income-producing properties, from shopping malls to apartment buildings, and pay investors dividends from the rental income.
If passive income sounds like coffee, REITs could be your entry ticket. Publicly traded REITs are the easiest to buy, just like stocks. They offer a diversified way to invest in multiple properties without ever unclogging a drain.
Want to add some extra convenience? A property manager is behind many REIT properties, ensuring those rent checks keep rolling in while you watch your portfolio grow.
Join an Online Real Estate Investing Platform
If you’ve ever swiped right on a dating app, you’re already familiar with how these platforms work, just replacing singles with real estate projects. These sites connect investors with developers who need cash to build or renovate properties.
Investors can contribute funds to a project through debt or equity and potentially earn returns when the property starts generating income. Just know these investments can be high-risk and not as easy to cash out as your typical stock.
Pro tip: Some platforms are only open to accredited investors, but others, like Fundrise, welcome everyday investors. And guess what? Many of these projects also rely on property managers to keep things running smoothly once the buildings are up and rented out. You can find more information about this matter on this website.
Rent Out Property (Without Becoming a Full-Time Landlord)
Buying a rental property can feel like playing Monopoly in real life, except with actual mortgages and the occasional broken toilet. The secret to success here is ensuring your rent covers expenses and leaves a little extra in your pocket.
Are you not thrilled about dealing with repairs or chasing down late rent payments? That’s where property managers come in. They handle tenant screening, maintenance, and all those pesky day-to-day tasks while you sit back and enjoy the rental income.
One smart hack? Try house hacking, live in one part of the property, and rent out the rest. You’ll lower your living costs while building equity. Plus, you’ll have a front-row seat to the magic of passive income (without plunging any toilets yourself).
Flip Properties (If You Have the Nerve and the Budget)
Flipping houses isn’t just for reality TV stars with perfect hair. It can be a lucrative way to make money in real estate if you know what you’re doing. The trick is to buy low, renovate smart, and sell high. Easy, right?
Not exactly. Flipping comes with plenty of risks, from budget blowouts to unexpected delays. If you’re not handy with a hammer, partnering with a contractor or experienced investor can keep your flip from flopping.
And while you’re waiting for that big sale, you can talk to the expert team at Swift Property Management to understand how to find short-term tenants that can bring in some cash and cover your holding costs.
Rent Out a Room
If buying property sounds too ambitious, start with something minor, like with your spare room. Platforms like Airbnb let you turn that unused space into a money-making machine without locking into long-term leases.
It’s a low-commitment way to dip your toe into the rental market and see if the real estate life suits you. Plus, you can vet your guests and set your schedule so no cranky tenants call about a dripping faucet at 3 a.m.
Real Talk: Which Strategy Is Right for You?
The best real estate investment isn’t the one your neighbor’s cousin’s barber got rich off. It’s the one that fits your lifestyle and budget. Whether you’re looking for low-effort dividends or ready to roll up your sleeves on a fixer-upper, there’s a strategy with your name on it.
And remember, property managers aren’t just for the rich and famous. They can be your secret weapon for turning real estate into truly passive income, leaving you more time to dream up your next big investment move.
