7 simple ways to invest in Real Estate

Buying and owning a property is a great lucrative and satisfying investment strategy. Real- estate owners can buy a property by paying a particular amount as down payment and the balance paid along with interest over a period of time. This facility cannot be enjoyed by stock and bond investors. In a traditional mortgage, 20 to 25% of the cost is required to be made as a down payment but with the new policies, 5% down payment is sufficient to purchase a property. This facility of controlling the asset once the papers are signed, allows the owners to take out second mortgages on their homes for buying additional properties.

Ways of making money on real estate:

Ø By becoming landlord of the rental property

Ø Buying undervalued real- estate, do a makeover and sell

Ø By investing in real estate investment trusts which are dividend-paying stocks

Simple ways to invest in real estate:

· By becoming a landlord- One should have enough funds for maintenance and to cover the vacant months. Very ideal for people with renovation skills and the patience to deal with the tenants

· By investing in real estate investment groups- This is well suited for people who want to own a property and simultaneously want to avoid the hassles of running it. People with a capital cushion and access to financing can go for it. But this requires due diligence for sourcing best opportunities, otherwise getting duped is a big risk. These groups are like small mutual funds that invest in rental properties. In this, a company builds a set of apartments or flats and invites the investors to purchase through the company and make them join the group. A single investor can own one or more than one apartments but the company manages these apartments right from advertising vacancies, fixing up the tenants and handling maintenance. For this, the company takes a particular amount from the monthly rent and the investor gets his share.

· Real estate trading- This option is for people having a vast experience in real estate valuation, marketing and renovation skills. Capital as well as the efficiency to oversee repairs are the requirement. In this option, both capital and the efforts can remain tied up in a property and depending on the market conditions, there can be significant returns even in a short period. Luck and market knowledge are the requirements since there may be unexpected cooling of the hot market leaving the traders with losses and the woe that accompany.

· Investment in Real Estate Investment Trusts (REITs)- This is suitable for investors who are in need of portfolio exposure to real estate without a conventional real estate transaction. This requires investment capital. REITs are dividend-paying stocks but the leverage associated with a traditional rental real estate does not apply. REITs serve as a solid investment for stock market investors who are in the lookout for regular income. REITs are exchange-traded and are highly liquid.

· Investing in Online Real Estate Investment Platforms- This option is for the investors who are interested in investing along with others in a big commercial or residential deal online. Requires a high investment capital. Online platforms connect investors to the developers.

· Real estate wholesaling- In this the wholesaler finds a distressed seller and negotiates the deal for a significantly lower price. He finds a prospective buyer of the investment property and seals the deal. In this, the wholesaler earns a fee.

· Investing in real estate without buying an investment property (Airbnb)- Airbnb is an online platform that allows property owners to rent out their real estate investment properties of all types for a short period of time. This platform is gaining popularity since it allows anyone to become a real estate investor and make money without buying an investment property such as 3 bhk flats in Nagpur. They can be a part of real estate investing and start making money from the comfort of their own homes.

Any investment in real estate has a great profit potential whether the overall market is up or down. Shiv Kailasa in Mihan offers flats and apartments on which one can invest to reap profits as IT sectors are investing in the Mihan area and there is a tremendous rental potential coming up in that area