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There’s More Than One Way To Invest In Real Estate

Housing-Market / US Housing Feb 05, 2020 - 12:14 PM GMT

By: Joshua_Rodriguez

Housing-Market

Investing in real estate is a hot topic these days. After all, there are several people that have made a killing doing it. Not to mention, several television shows have popped up over the past few years, outlining the fact that there’s money in the space.

However, the general perception is that in order to invest in real estate, you have to have enough money to buy a house, piece of land, or commercial building. While this is one way to go about an investment in real estate, it’s not the only way to do it. If you’re considering getting into the space, here are a few ways to consider breaking through:


Buying Property Outright

Ahh convention. The conventional way of investing in real estate is simple. Investors will find a property that’s priced right, and purchase it. Of course, the goal of the purchase is to make money in the long run.

Once the property is purchased, the purchaser tends to make renovations with the goal of increasing the value of the property. These renovations can be as simple as putting down new flooring and as extreme as tearing out walls and adding extensions.

Once the renovation work is done, the property buyer looks to make their return. This is done by either selling the property at a profit or renting it out, turning it into a long-term income property.

But what if you don’t have the money it takes to buy a property and do renovations?

Buy Shares In Publicly Traded Real Estate Companies

One great way to gain exposure in real estate is to look for publicly traded companies in the industry that have shares for sale. One of my favorites in the space is known as International Land Alliance (ILAL).

International Land Alliance purchases raw land in popular areas in Mexico. From there, the company develops homes, resorts, and more, turning a profit by renting or selling these homes and resorts once they are complete.

Investing in a company like International Land Alliance in order to break into the real-estate investing space has comes with a couple of key benefits:

  1. Minimal Up Front Cost - While investing in a new property could cost tens or hundreds of thousands of dollars, investing in a publicly traded company comes with a far lower minimum cost requirement. In fact, International Land Alliance trades at a price of around a dollar per share, making an entrance into real estate in this way very economical.
  2. Less Work - Companies like International Land Alliance pride themselves in their ability to find good deals, manage quality construction projects and sell or rent properties once they’re complete. If you purchase your own property, you’ll need to be in charge of all of this. However, investing in a real-estate company takes this work out of your hands.

At the end of the day, if you want to make money in the real estate space, but don’t have the time or money that it takes to purchase and renovate properties, making an investment in International Land Alliance or another real estate company gives you access without the headache.

Buy Property With A Partner

Another good way to go about gaining exposure to the real estate industry is to look for a quality partner to share the risk with you. Friends and family members often share like interests, it’s possible that someone in your circle, that you get along with, will be willing to make an investment with you.

Entering the real estate industry with a partner can greatly reduce the cost and amount of work associated with purchasing. However, there’s something big to consider here. Not all partners will work well together.

Before getting involved in a real estate investment with a friend or family member, it’s a good idea to sit down, and outline a couple of things:

  1. The Type Of Investment That You Plan To Make - You may be interested in buying, renovating and selling real estate while your partner might be interested in creating rental properties. Make sure that your interests are alike, not only when it comes to the type of real estate investment that you plan to make and the type of property that you plan to purchase.
  2. Duties & Responsibilities - In any partnership, certain members of the team will take on certain duties and responsibilities. For example, who will be in charge of scoping out properties? What about negotiations, paperwork and repairs? Think about all of the activities that will be involved and come to an agreement as to who will be in charge of what.

Final Thoughts

The real estate space is one booming with opportunities. If you thought that a lack of available time and funding could stop you from getting involved, you were misinformed. The truth of the matter is that no matter if you want to get involved on a large scale or on a small scale, there are multiple ways to tap into the world of real estate investing.

This article is a paid advertisement sponsored by International Land Alliance.

By Joshua Rodriguez

© 2020 Copyright Joshua Rodriguez - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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