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Types of Real Estate Investments in 2020

by Elsa Stringer

If you are in the business of investing in many interesting projects, you know that real estate investments are the hottest of them all in recent years. Let’s say that you are in love with investing, and you invested all of your capital in the stock market.

Maybe you would think that investing in real estate requires a lot of ongoing work or a lot of money upfront. We are going to be honest and say that there is truth to these claims. However, there are several ways you can go with your investment. While this type of investing can bring a touch of uncertainty, and let’s face it, it’s not for everyone and it can be very lucrative.

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There are a lot of people who made serious amounts of money by investing in real estate. You need to make sure to separate long-term projects from short-term ones, which is especially important if we are talking about real estate investments. This year is going to be a tough one for investors due to the economy who is showing signs of slowing down.

If you are further interested in this topic, you should check out UpNest. In case you want to make further expansion in your real estate investments, we are going to provide you with different ways you can take when it comes to this kind of investing.

Buy a Rental Property

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Buying a property and renting it is one of the best ways to produce some additional monthly income. In order to do this, you need to buy a property that has combined home insurance payment, property tax payment, and monthly mortgage payment. The combination of these three needs to be lower than the rent you are planning to ask out of the renter. There are several approaches you can undergo. You can buy a property or a home in an area that has high rents.

There are downsides to owning property directly. It requires a lot of money upfront, due to the maintenance and down payment. You need to calculate if this kind of investment will make you a profit in the future. The other one is dealing with tenants. The first thing you will need to do about them is screening them before you let them move in. On the other hand, you will hear one or two sad stories, so you will need to be careful and patient with them. In case you are a person who has a soft spot for this kind of stories, then you should let a property management service to look after your properties.

Investing in Large Real Estate Deals

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Surely one of the most popular ways to invest in real estate is investing in real estate deals, joining several other investors in the process. This type can be either residential or commercial. There are two very good things about investing in some of these online. Thankfully, there are a lot of websites you can check out if you are interested in this topic.

  • You don’t need to be an accredited investor

Until several years ago, it was required of a person, who is interested in participating in this type of investment, to be an accredited investor. Thankfully, today this is not the case.

  • Low minimums

Depending on the platform you are using, you can even invest $500 and be the owner of some percentage of the property.

Renting Portions of the Estate

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In case you own a property and you are not in favor of selling it at the moment, maybe you can earn some extra money by renting some portions of the estate. This is a very good test to see if you can accumulate some amount of money you can invest further.

You can rent a spare room you have in your apartment, a basement, or you have an object which could serve as good storage. The main advantage of this way is that you are always going to be close to your tenant and you can observe his behavior towards your property. Also, you are going to get a feeling of being a landlord before you can undertake much bigger projects.

Flipping Houses

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Flipping houses or properties is probably the oldest way of investing in real estate. This is not without a reason. Even though it can be risky, it can provide you with a significant amount of money after some time. At the moment, the values of properties are on the rise, so this is an exceptionally good time to undergo some of this type of investing. Flipping a house means that you need to buy a house under the price market, repair them, make them better than they were, and then sell them on the market.

In order to be successful in this line of investments, you need to be able to hut down and buy homes that you can acquire for a smaller amount of money than they actually worth. After that, the less work you are required to do, the better. The best possible investments when it comes to flipping houses are those where you need only small, cosmetic repairs. Don’t be fooled, sometimes is just enough to make a home look better than it was before, and you can earn a lot of money.

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You need to be patient and careful with this one because it could take some time before you are able to sell it on the market. In order to take out as much as you can from this investment, you need to pay attention to several elements, like the price of the property, location, what needs to be repaired, etc. In case you learn all that’s important about flipping houses, you can be sure that this is one of the best choices you ever made.

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