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Investments are always risky. If you’re looking to invest in real estate, you need to know what you’re getting into. The subprime mortgage crisis which happened a decade ago was the result of predatory loan companies taking advantage of homebuyers. 

Here’s how you can invest in real estate 

Have a look at these ways you can invest in real estate by purchasing a property.

  1. Fix a home – Flipping homes is a great business model. It’s as simple as buying the property, pouring money in to fixing the finer details and then flipping it for a profit. The only things you’ll need are money beyond the initial investment and time to fix it up.
  2. Rent to own – A popular option that many people explore is rent to own. Rent to own is where you sign a contract to rent a home for a pre-determined period. Once the time has expired, you’ll have the option of buying the home. How it works is that a percentage of your monthly rent payments are allocated to the downpayment of a mortgage when the purchase becomes finalized. Rent to own isn’t without risks which is why you must carefully skim through the details of the contract to make sure it’s right for you. Rent to own is great for people who cannot commit to buying a home.
  3. Buy rental property – This system is easy to understand. Purchase an entire rental property. After buying an entire property, you can rent out rooms and apartments to tenants. If you keep your expenses low, your rent prices will be affordable to prospective tenants which should net you a lot of business. 
  4. Use apps like Airbnb – Airbnb is a popular way for property owners to supplement their income. Airbnb works by registering your house on the app and uploading details, like how many people your house can accommodate, where it’s located, and so on. It is a great way for you to turn your investment into a constant money maker.

There are plenty of other ways you can invest in real estate. Explore the ones mentioned here first before branching out.