Skip to content

Real Estate Investing

What you need to get started

  1. Decide what kind of investment you want to get into. And it can't be all or anything.
  2. Real estate agent / Deal finder
  3. Property manager (as portfolio grows)

Common ways of investing

  • Fix & Flip
  • Short-term rentals
  • Small-scale residential rental properties
  • Large-scale residential rental properties
  • Commercial real estate
  • Real estate investment trusts (REITs)

Fix & Flip

Involves purchasing a residential property, fixing it up, and selling it to someone who will love it.

Note: Always have an exit strategy when getting into property flips.

Dependency

  • Substantial capital - to cover labor and supplies
  • A construction crew or subcontractors - one you can trust.
  • Time - you also will likely be subjected to multiple inspections, all of which you must pass before being allowed to market your property.

Financing

Construction loans are possible, but they are often difficult to obtain as a first-time flipper due to experience requirements and other bank-imposed terms.

In a worst-case scenario, your flip house can be converted into a rental property. It will take a lot longer to recover your investment, but it can be a solution if the property can’t find a buyer.

Resources

Last update: May 2, 2024