Effective Investment In Real Estate In Ways An Amateur Understands

^{We need land as much as we need a place for our family. Fair distribution is what we all pray for. I hope that we all aim at that as we venture into the world of real estate.}

^{Let’s say that you have 1 million dollars to invest. If you put that money in a bank, it will grow to 1.4 million dollars with interest, depending on the rates at your bank. On the other hand, if you invest in real estate, you can get 5 million at the same time.}

^{If you are looking to invest in real estate, here are the facts. People who have put their money into urban and peri-urban land are now wealthy.}

^{Individuals who invest in property near offices and industries are wise as they will enjoy a strong increase in property value.}

^{The StocksReviewed’s review on Kiyosaki’s real estate book will show you how to invest to receive a steady income.}

^{Read on to know 5 ways to invest in real estate that are practical and yield healthy capital.}

^{5 Ways To Invest In Real Estate In The Simplest Words}

^{We all know that real estate is part of a healthy investment portfolio, so let’s not waste time and dive straight into it. Don’t worry; I will make it as easy as I can so that even a child can understand.}

^{The Traditional Route}

^{The first way is self-explanatory. What I mean by traditional is acquiring a piece of investment property yourself.}

^{This can be a piece of land waiting for development or a family home. It can be an apartment building or a strip mall.}

^{It depends on the experience you have in the capital. Essentially, you hunt for your deals or use a broker.}

^{Whatever route you take, make sure you have the proper team around you. Make sure you trust them.}

^{If you take the family home route, tell everyone you know that you are an investor. People will either not care or give you an opportunity. Work hard, and this method will pay off.}

^REIT

^{The term RIET stands for Real Estate Investment Trust. It is a public or private company that owns some income-generating property.}

^{REIT allows everyday investors to invest in commercial real estate. Strip malls, plazas, or even self-storage can become a REIT if they grow big enough.}

^{REITs have to have 75% of their gross income coming from real estate resources. Furthermore, they have to invest at least 75% of their total asset value in real estate.}

^{They must distribute 90% of their taxable income to their shareholders in the form of dividends. For this reason, REITs pay high dividends.}

^{Online Crowdfunding}

^{This is an up and coming way to invest. It has been around for 6-10 years. An online crowdfunding company gives a passive income stream.}

^{If you want to invest in actual tangible real estate without management hassles, this is for you. Online Crowdfunding is like a real estate version of a mutual fund.}

^{Investors pull their money together to provide debt or equity for deals. A big benefit is that investors get to diversify their portfolio with real projects.}

^{The reason the income is passive is that management is in place. Fundrise and RealtyMogul are examples of online crowdfunding.}

^Syndication

^{Real estate syndication is when a sponsor pitches a project to investors. He also pulls the money together for an actual deal.}

^{Syndications typically start at the minimum investment of $50,000. Depending on the deal, you may have to have very good credit. This means that you have to have a net worth of a million dollars without your primary residence.}

^{If not so, you have to have an income of 200,000 dollars a year in the current and foreseeable future. However, there are ways to get around the credit criteria.}

^{The sponsor pitches the deal, and they usually get compensation for putting the deal together.}

^{Here is a warning that you must heed. Some sponsors pitch crappy deals because they get fees, so make sure that the sponsor is a stakeholder as well.}

^{House Flipping}

^{Acquire property for X and sell it for Y. Y is to be of a much higher rate than X. Flipping houses can be risky; however, if successful, it’s very lucrative.}

^{Hidden negatives of the property or a bad economy and many other factors lead to a tragic loss. On the other hand, if all goes well, you will make a lot of money in very little time.}

^{Which Way To Go}

^{I have given you many options to pick from. However, not all of them may suit you. I do not want you to lose money by investing without advice.}

^{I care about your money, so I will tell you what I think. If you disagree, then congratulations! You know more about investing in real estate than me. In other words: you are ready!}

^{Ok! Let’s do this! Firstly, house flipping and syndications are not a good idea. They are risky, and there is a strong chance that you will suffer a grand loss.}

^{I am not saying that you are a bad investor, and I am not insulting your intelligence. However, there are a lot of scammers out there who want to rip you off. House flipping and syndications are both prone to falsehood.}

^{Now that the warning is out of the way, let’s talk about what I prefer. I love REIT as it is kind to old people. Why? They pay out generous dividends. Furthermore, you get a sense of pride in being part of a company.}

^{Online crowdfunding is new, and we have to wait and see how it changes with the advancement of technology. I predict the child-friendly interface and incorporation of cryptocurrency. You don’t deal with the hassle of managing either.}

^{Traditional real estate investing is the last path I need to discuss. I will be clear with you just like my father was with me.}

^{Slave away like the good old days and be a commanding team leader or CEO. This path will reward you immensely.}