The real estate world offers you diverse opportunities to invest, whether it is through REITs, running an Airbnb, or more. Based on what many successful real estate investors say, the sooner you invest in the real estate world, the better the payoff is for you. The short answer to the question in the title is, yes, there is money in the real estate world, provided you make informed decisions.
People have several misconceptions about real estate investing. Most quickly assume that if someone has accumulated wealth from the real estate world, they must be rich billionaires in massive cities. Yes, they invest in the real estate world, but it’s not limited to just them. Even the rich billionaires must have started somewhere, right? You can too. If you’re not sure how to begin, you’re not alone.
If your goal is to become a real estate investor, you can even start with as little as $500. Shocked and confused? Let’s expand on that a little.
Understanding Real Estate Investing
While the most basic understanding of real estate investing is that it is either the sale or purchasing of land to make more money, you can choose a few different kinds of real estate investing based on your needs.
- Residential Real Estate: This kind of real estate investing involves vacation properties, getaways, houses, apartment buildings, and essentially anything residential. This is the most accessible form of real estate investing for a beginner.
- Commercial Real Estate involves buildings used for business or commercial purposes and is significantly more expensive than residential real estate. The quickest way to get into CRE is to buy shares in REITs (real estate investment trusts).
- Industrial Real Estate: This includes large storage spaces and units for special purposes. They can include warehouses, storage spaces, car washes, and more.
Why You Must Invest in Real Estate
When you invest in the stock market, you don’t have access to a lot of leverage or get a chance to grow your wealth with the help of borrowed funds. However, the real estate market offers you leverage to do that by allowing you to borrow money to finance more properties. If you have a clear understanding of how the real estate market works, with a reliable real estate agent backing you up every step of the way, you can do everything in your power to maximize your finds.
Another reason to invest in the real estate world is to diversify your portfolio. You may not know this, but your investments in stocks, bonds, and equity investments can prove to be highly volatile and can drop in a matter of seconds if the market crashes. That is something that won’t happen when you have solid real estate investments in place, keeping your money secured.
Contact your real estate friends at AlpharettaZen to begin your real estate investment journey now.