Get Started with Investment Real Estate

Getting Started in Investment Real Estate

It is often said that real estate is the number one sector to invest your money in for returns. You hear almost every public figure, influencer, and “money-making” guru mention their success with investing in real estate while suggesting it to their audience. Now you may be thinking of getting started in investment real estate, but don’t really know where to begin. That uncertainty, paired with the lack of credible knowledge, will ultimately lead to resistance and reluctance to begin. Let’s take a look into getting started in investment real estate to prepare you for a successful investing journey. 

Benefits of Investing in Real Estate 

Investing in real estate can reap many benefits, the most obvious being income. Real estate investment can be used as both an avenue of additional income or as a full-time career. Either way, real estate investment comes with the goal of making money, striving to reach the level of creating generational wealth. 

Choosing real estate as the concentration to invest your money is a great choice. Real estate is historically known to have consistent appreciation. With the value of your investment almost guaranteed to rise, why would it be a bad choice? Not many other investments also carry tax benefits. Real estate investing brings tax benefits as well, being able to write this off as an expense for your business and/or investment. 

Types of Real Estate to Invest In

Real estate is a vast market with numerous property types. However, there are three main sectors of real estate which are known for being invested in – Residential, Commercial, and Industrial. To get a better idea of these four main types of real estate we elaborated a little more on each:

  • Raw Land – Just the ground or land you invest in can be put to use for your investment purposes. This includes leasing it for agriculture or livestock purposes, recreation purposes (i.e. private hunting/fishing land), or could be subdivided and sold for ground-up construction. 
  • Commercial – As well as the 5+ unit multifamily buildings, commercial real estate includes office buildings, shopping centers, hotels, mixed-use (both residential and commercial in one property) and special-use. 
  • Industrial – Industrial real estate includes manufacturing, shipping, and distribution facilities in addition to storage centers, warehouses, and much more. 

Methods of Investing in Real Estate 

The two most well-known methods of investing in real estate for beginners are Fix-and-Flips and Fix-to-Rent. Both methods involve the process of buying a distressed property, fixing or rehabbing what is needed, and then either selling (Fix-and-Flip) or restructuring your loan to hold the property and rent it out (Fix-to-Rent). 

Another way to invest would be the purchase of a “turn-key” property. A “turn-key” property is one that is already up and running and producing cash-flow. The investment of this property would be just a change in ownership, allowing it to continue functioning as normal. Turn-key properties can be any type of real estate: residential, commercial, industrial, or land. 

There are ways to invest in real estate without getting fully immersed in the field and processes. One of these would be a Real Estate Investment Trust (REIT). REITs can be found on most major stock exchanges and you would invest in these as you would any other stock. The difference between REITs and most other stocks is that REITs use your investment in addition to other investors as capital to fund their real estate investment projects. REITs are known for being a low-risk investment that has frequent dividend returns. 

Preparation

One aspect of preparation to invest in real estate that cannot be stressed enough: research. You can find us often giving the advice of researching. It is something you can never do too much of as it provides insight, knowledge, and preparation that you could not get anywhere else. Research to understand the area and market you want to invest in. Make a plan of action and concentrate your focus around it. If you’re feeling indecisive or unsure about a particular aspect of your investment real estate research, contact LenderFi.co to get the experienced, expert perspective of a LenderFi.co loan officer. 

Where to Begin

There is a famous saying, “It takes money to make money,” but not as much as you think. That is where financing with LenderFi.co comes in. You will almost always need some amount towards a down payment, but that is only a small percentage of the purchase price, so do not be intimidated by big numbers while entering into the real estate investment world. 

If you are worried you may not be able to make financing work by yourself, whether because you don’t have the personal funds, credit, etc., there is always the option to have a look into a joint-venture (JV) and partner with a more experienced investor. 

The real estate community is not one to “gate-keep” information and there is a major online presence of beginning investors just like yourself discussing amongst each other while networking and learning from those more experienced. Look into online real estate investing groups or forums, to your surprise you may learn a lot more there than you would think. 

Overall

Investing in real estate is a path to passive income and wealth. Understanding your options, knowing what you’re capable of, and doing your research will guide you to the path of most success. 

LenderFi.co is dedicated to aiding you wherever necessary and getting you the best financing rates and terms for your investment real estate projects.

Click or call today to speak with a LenderFi.co loan officer and begin your application process. 

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Ryan Thaler

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We provides superior asset-backed investment solutions for individuals, institutional clients, family trusts and our own syndication/development partners.

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