8+ Smart Ways to Invest in Real Estate in 2024

Posted in Investing, Real Estate on December 22nd, 2023

Investing in real estate may seem daunting, especially if you are just dipping your toes in the field or you have a limited budget to play with. Nonetheless, real estate is an extensive – and always in expansion – field, which offers opportunities for all kinds of investors, no matter your level of  expertise or capital. 

If you’ve always considered taking up real estate investing to build an additional income stream or to expand your investment portfolio, we have your back. This guide will offer you lesser-known strategies you can take up in 2024. Let’s dive in!

Look Into the Benefits of House Flipping

If you’ve always had a knack for seeing the potential in something that is less than perfect, this may be your chance of transforming a diamond in the rough into the perfect investment. House flipping is all about finding the right properties to turn around, adding smart features, and completing all the renovations new owners will love in the most convenient way. If you can do that – and you are familiar with DIY and craft projects – this may be the option for you. 

Consider Flipping Commercial Properties

If house flipping does not tickle your fancy, you may consider the advantages of flipping commercial properties. If you have enough capital, this strategy is all about finding commercial spaces that are not optimized or businesses in the process of closing down. Then, with your expertise, you can turn these spaces around and sell them to those entrepreneurs looking for a home for their business or office. 

If you know little about flipping commercial properties, don’t let that stop you. Industry-specific resources can help you better understand how to invest in a property to make it more desirable in the eye of a potential buyer. For example, if you are looking to sell to a HVAC company, a reliable HVAC glossary and ad hoc technologies can guide you in the right direction. 

Tap Into House Hacking

Next up, let’s look at how to unleash the full potential of your property. If you already own a home, there’s plenty you can do to make the most of your assets. Some of these options include:

  • Flipping the property while you are living in it
  • If you own a multi-unit property, consider renting the other units
  • Create a short-term vacation rental
  • Rent your garage or storage space 

Invest In Property Through REITs

REITs, or Real Estate Investment Trusts, are companies that own, operate, or finance real estate properties with the goal of generating income. These companies pool together the investments of multiple investors, and then distribute earnings and dividends in accordance to how much each investor contributed. This is an excellent investing option for those with limited capital who wish to take advantage of both the stability of real estate and the liquidity of the stock market. 

Profit From Holiday Home Rentals

If you have limited capital but you can afford a second home or additional property, you may consider the benefits of purchasing a holiday home rental. Using platforms such as Airbnb and Vrbo can help you secure a solid income stream. Think, for example, that the profits deriving from an Airbnb rental have been on the rise and, today, the average host earns more than $13,800 a year

Pool Funds With Crowdfunding

If you are struggling to find the right funds to secure your property, but you have a brilliant idea to pay back your investors, you should consider the benefits of crowdfunding your project. This can help your closest family and friends get involved – but your project may also inspire others outside of your circle to donate to your cause!

Learn More About Land Ownership

If you are eager to secure an investment but are unsure about the right type of option for your needs, consider the benefits of land ownership. Vacant land requires minimal maintenance and you won’t find as much competition to deal with. What’s more, since the land is yours, you can enjoy a world of possibilities in terms of what investments to make in the future. 

Learn How To Find Off-Market Deals

If you have built experience in the real estate market, you may consider the benefits of off-market deals. These are usually more affordable than the ones you’d find on MLS websites, but closing a deal may require a higher level of experience. 

Some ways to find off-market properties to buy include networking, wholesales, auction sales, and direct contact with the seller. 

Partner With A Specialist

Last but not least, don’t forget that there’s many ways to reduce your risk when investing in real estate. If you are unsure of what the best steps to take are, partnering with a specialized advisor can help you make all the right choices. 

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