Creative Ways to Start Real Estate Investing (Without Selling Your Home)
With so much talk of ways to make money through investments, many are turning to real estate. Real estate is a great way to build long-term wealth, and there are endless ways to begin investing.
You may have seen house flippers share new home trends, but never how to start investing. Real estate investing comes in endless shapes and forms, and you don't need to sell your house to get started!
Real estate investing offers endless opportunities. There are many ways you can easily start investing without having to sell your home. You can start investing in real estate without selling or flipping houses, or even owning your own home!
Here is how you can start real estate investing today without having to sell your home.
1. Airbnb /Vacation Rentals
Rentals are a real estate investor's bread and butter. Results provide monthly passive income for investors making them an important aspect of any investor's portfolio.
While renting can have its pros and cons, it is a great way to generate income monthly. Short Term rentals offer a lot of flexibility for real estate investors, which is why more investors are hopping on this opportunity.
Thankfully, you can start renting and get a taste for being a landlord without having to own any additional properties. With the help of rental apps like Airbnb or vrbo, you can easily rent out spare bedrooms and begin to generate your own passive income.
By using rental apps, you can get a feel for how to generate passive income. Additionally, you can learn needed real estate skills, such as marketing, tenant management, and property upkeep.
Moreover, these apps make it easy to set your rental periods, and set rent rates. You can find short-term tenants (a few days) or even long-term tenants like those over a month!
Depending on your location you can even do vacation rentals and adjust for busy seasons.
If you have a spare room and are looking to get hands-on experience with real estate, try rental apps!
2. Note Investing
Note investing is another easy way to invest in real estate without handling properties or tenants. You can make passive income, with high returns without having to maintain any properties or even service the loan.
Note investing is a favorite of some investors for its easy management and minimal maintenance. When a property is bought with a loan, the buyer signs a promissory note to repay the loan. The lender can sell the notes to investors to increase their equity or cash flow.
Investors can profit off these notes from the interest and fees from the loan itself. Some advantages of buying real estate mortgage notes, include:
- High Yield Returns
- Generate Monthly Income
- IRA Friendly
- Rollover Options Depending On the Note And Lender
Investing in mortgage notes is a great way to build passive income with minimal management. Note investing can require large down payments, which can be made from IRA or other investment accounts. Always consult with professionals before making any investment.
Before you purchase a note, be sure to do your research on your note and the lender offering the note. Things to look for when purchasing a note are:
- How you will pay for the note
- Note performance
- Type of note (secured are the best to invest in)
- Servicing, and the lender.
Note Investing is an easy way to start real estate investing. It offers low-risk and high returns, making it one of the easiest but more expensive ways to start real estate investing. Without having to get your hands dirty, you can generate monthly passive income from a note.
3. Virtual Real Estate Investing
Did you know you can invest in real estate virtually? It’s true! One of the easiest ways to start your real estate investing journey is to ‘crowdsource’ a real estate investment.
Crowdsourcing or virtual real estate investing is a newer way to invest in real estate. It gives investors access to assets that they can crowdfund and share in the profits making it easier than ever to start a real estate investment.
Crowdsourcing a real estate investment is as simple as pooling money with other investors to either purchase rentals or fund house flips. Once the investment is complete you can see high returns from the flips or the monthly profits depending on your investment.
How you choose to crowdsource can be as hands-off or hands-on as you like. Depending on the site you can choose from a wide variety of investment types, investors, amounts, and more!
You can choose services that help you pick the best investments, or you can choose which investors or investments you choose to work with. You will receive payments depending on the interest of loans from investors or from the profits of the investments themselves depending on the type of virtual real estate investing you choose.
Virtual/crowdsourced real estate investing is a great way to get investing without the maintenance. Additionally, you can invest as little or as much as you would like, but returns may vary. Like any investment, always do your due diligence and research before you invest.
Virtual real estate investing is one of the lowest-cost ways to begin investing in real estate. With some software only requiring $500 or less to start.
In Conclusion
While shows and magazines love to share the hottest house flipper trends, they never share how you can start investing. You don’t have to flip or sell your home to start real estate investing. You could start real estate investing today in any of these creative ways.
- Airbnb Or Vacation Rentals: Turning your spare bedroom can be a cash cow! Rent our spare rooms to get a feel for being a landlord and generate some money on the side.
- Note Investing: Purchasing the notes from lenders is a great way to see monthly passive income without the hassle of tenant or property management. You work directly with a lender and can choose the terms that work best for your investment plan.
- Virtual/Crowdsourced Real Estate Investing: Work with a group to invest in property in real-time and see returns, you can easily invest as little or as much as you want and choose the property and investment type that is most appealing to you.
So, there really is no excuse why you should not start investing in real estate today.