4 Real Estate Investing Strategies

As tempting as it might be to buy a property so as to rent it out and earn some extra income, there is a way that you can actually invest in a property without having to buy it. Dealing with the hassles of being a landlord may be tiring and sometimes frustrating – especially when it comes to dealing with some tenants. The real estate industry often experiences a financial growth and you may find it reasonable to invest in a property. This is possible even without taking up a career in being a landlord. So here are some tips for making housing investments without handling tenants.

Real Estate-Focused Companies
Make investments in companies that deal with real estate matters. Such real estate-focused firms include resort operators, commercial developers for real estate, hotels and timeshare companies. But, carry out a background check on the individual real estate company you would like to invest in.

REIT means real estate investment trust. This is a firm which normally owns and runs real estate properties and assets such as mortgage bonds or mortgages. REITs not only own real estate properties, but they also provide their investors with cash flow. As an investor, it is more suitable to go for publicly-traded REITs rather than non-traded REITs which may have high fees, lack of liquidity and value transparency.

Home Construction
Shelter is one of the human basic needs. Thus, the construction of homes is one of the booming factors for the real estate industry, which many predict will grow over the coming years. So, as an investor, instead of renting out a property, it would be wiser to invest in home construction. This would involve the development of new neighborhoods in metropolitan areas that are growing or the improvement of existing ones. But, before venturing into the industry of homebuilders, it is important to note where such companies focus their investment plans.

Rental Manager
If investing in rentals is your passion but you do not have the managerial skills, it is advisable to hire a property manager. Also, instead of dealing with troublesome tenants, let the property manager deal with all the heavy work. In most cases, many investors will buy rental properties so that they may have an exposure to the rental real estate industry. Some may end up selling their property from lack of managerial talents. While you do not want to invest in a property and end up not reaping the benefits, it may also be challenging to manage a rental property. Thus, a property manager will, therefore, help you in managing your rental property so that you can still be the landlord that you want to be without putting in much sweat in the work.

- Justin