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Thoughts on How to Invest in Real Estate


When it comes to investment opportunities and alternative form of wealth creation, real estate investment is a very great way to diversify one’s portfolio. You can invest in real estate either by buying actual properties or by acquiring shares from a publicly traded company that owns commercial and residential buildings and apartments.


Real estate investment is a great idea especially if you happen to reside within an area with a progressive real estate market, just be prepared for the commitment that comes along with real estate investment.


Most Americans believe that investing in real estate is such a great idea, but sadly, according to RealityShares, only about 15% of Americans venture into actual real estate development, defined as real estate investment outside their current residence. What is the reason behind this low real estate investment by Americans despite its popularity? According to the survey by RealityShares, the reason for low real estate investment by Americans seems to be that most individuals believe that real estate flipping is not as easy as it sounds. About 80% of millennials that participated in the survey believe that real estate flipping is actually very difficult hence most individuals tend to stay away from real estate investment as they are not prepared for the large commitment.


Having a second thought on real estate investment? Before you change your mind in investing in real estate, there are some things you should know. Nobody likes to dive into unknown territory, so before you make the financial commitment, it is important that you become knowledgeable of the real estate sector. Education, research and planning can help guard against financial loss. You need to find a real estate investment that is worth the risk before investing.


Forms of Real Estate Investment

Real estate investment does not consist of just having a residential property or renting out your property, there are many opportunities in the various forms of real estate investing. Consider the following:


Home Ownership: It's always great to own a home. Owning your own home gives you freedom from rent. Owning your home is itself part of a real estate investment strategy. When you own a home, you enjoy a stabilized monthly housing cost and build equity.


Rental Properties: Being a homeowner is great, but having a property and renting it out is an awesome opportunity. Having a property that you can rent out is also another form of real estate investment. The good news about rental properties, when compared to home ownership, is that it Is able to generate a steady source of income. Renting a property can be a great source of additional income especially when you retire. Rental properties can start from renting a spare room via Air B&B. Rental properties can generate thousands in revenue for individuals annually.


And when faced with challenges that come with renting properties, turn to a professional at Top Tier Real Estate. They can manage tenant acquisition, collecting rents, building maintenance, and more.


House Flipping: When most people hear about short term real estate investing, they think of house flipping. House flipping simply refers to buying a house, making necessary repairs, updates and improvements to resell the property at a projectable profit.


REITs: REIT stands for Real Estate Investment Trusts. It entails buying stock in organizations that own and/or finance real estate investments. REIT shareholders get a percentage of investment profit from these organizations.


Real estate is a great way to create a side income, it is also great to know that real estate can create so many opportunities for you. For more details and assistance in planning your next real estate investment, contact a Realtor at Top Tier Real Estate in Colorado Springs.

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