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Real estate investing for beginners can be done in many different ways.
Here are the 5 best ways of how to invest money in real estate to make money in the short and/or long run.
How to Invest Money in Real Estate – Way #1: Traditional Rental Properties
Traditional, or long term, rental property investing is the first thing which comes to the mind of most people when they think about real estate investing. That’s for a good reason as buying an investment property to rent out on a monthly basis is one of the oldest ways to invest money in real estate.
Investing in traditional rental properties is easy. You buy a property, perform any needed fixes and repairs, and start renting it out to tenants. As soon as you find good tenants, you start making money from rental income month after month. As a landlord, you have to maintain your income property in a good shape and address tenants’ requests in a timely manner to minimize vacancy rates.
The trick to make a profitable real estate investment decision is to buy a positive cash flow property in a top-performing market.
How to Invest Money in Real Estate – Way #2: Airbnb Rental Properties
Another way to invest money in real estate is with Airbnb properties (https://bit.ly/2XG6aus). This real estate investing strategy is very similar to traditional rental property investing. The main difference is that as an Airbnb welcome, you have to market your property continuously, clean it up on a daily basis, and welcome new Airbnb guests all the time. You also need to factor in more wear and tear from renters.
Importantly, however, according to nationwide real estate market analysis by Mashvisor, Airbnb rentals are generally significantly more profitable than long term ones.
If you are a beginner real estate investor wondering how to find lucrative traditional and Airbnb rental properties, check out Mashvisor: https://bit.ly/2Bz22DE.
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How to Invest Money in Real Estate – Way #3: Buy and Hold
Another real estate investing strategy for beginners is buy and hold real estate. This means buying an investment property now and holding on to it until the local US housing market appreciates enough to make selling your investment property worth it. You make money from the difference in the sale price and the purchase price.
The trick to make money with buy and hold is to choose a real estate market which is expected to undergo significant appreciation.
The main advantage of this investment strategy is that it is passive.
The downside of buy and hold real estate is that you make money only in the long term.
How to Invest Money in Real Estate – Way #4: Fix and Flip
Another way to make money in real estate is through flipping properties. This refers to buying a distressed property, after which you perform the most cost-efficient fixes and repairs before selling the property to a home buyer or another real estate investor.
With fix and flip, you can make a lot of money in a very short term. However, this is a very active real estate investing strategy, so you have to be prepared to devote a few weeks or a couple of months fully to your property.
How to Invest Money in Real Estate – Way #5: Real Estate Crowdfunding
If you are looking for a way to make money online in real estate, real estate crowdfunding is the right strategy for you. This means pulling your capital together with the financial resources of dozens of other real estate investors from around the globe through an online real estate crowdfunding platform to own common commercial or residential real estate properties.
Just as with traditional and Airbnb rental property investing, with real estate crowdfunding you make money in both the short and the long run. Moreover, similar to buy and hold, this is a very passive real estate investment strategy.
To find the lucrative traditional and Airbnb rental properties in the US real estate market quickly and efficiently, check out Mashvisor: https://bit.ly/2Bz22DE.