Top 3 Ways To Invest In Real Estate in 2020

Over the next 18 months, the vast majority of real estate investors plan to increase their allocation of capital into real estate. If you’ve made most of your investments in the past in the stock market, you may be thinking of diversifying your income through a real estate investment app. What options should you consider? Here are the top 3 ways to invest in real estate in 2020.

 

Buy A Rental Property
One of the best ways to increase your monthly cash flow is to buy a rental property. When searching for a property, do the math. Make sure the monthly rent you will receive is more than the monthly mortgage, property tax, and insurance combined. Some real estate investment apps allow you to search for properties for sale, and may even tell you the monthly rent and expenses associated with the property.

 

One drawback to buying a rental property is the upfront cost and day to day management. To ease the stress of dealing with tenants, you may want to consider hiring a property management service to oversee the rental property’s daily operations. Purchasing a rental property can be a lucrative investment for non accredited investors.

 

Flipping Houses
Flipping houses can be a risky but rewarding investment. You’ll need to hunt down bargain homes that require some work, but therein lies the upside in your investment. Once you make any necessary repairs, you can potentially resell the property for a profit. Finding a home in foreclosure may be your best bet to finding a great deal, and could cost as little as $500 down.

 

Real Estate Investment Trusts
If you’d like to take a more passive approach to real estate investing, you may want to consider Real Estate Investment Trusts (REITs). REITs are companies that own, operate, or finance real estate. Publicly traded REITs are bought and sold on exchanges. Public non-traded REITs are bought and sold through brokers or directly from the REIT itself. There are three types of REITs: equity, mortgage, and hybrid; Equity REITs own and manage properties. Mortgage REITs lend money to real estate owners and operators to purchase properties. Hybrid REITs are a combination of both. Generally, all of them offer high yields relative to other types of investments.

 

Real estate investing is an excellent way to build residual income. You can start investing today with a real estate investment app that you can easily download online. As with any investment, be sure to do your due diligence and understand the risks associated with investing.

 

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Should You Consider Investing in Real Estate During Your Twenties?

Real estate investment can seem like a seasoned investors game. But the truth is that almost 79% of millennials are interested in personal real estate investments, and about 49% interested in commercial real estate investments. So why shouldn’t you start now? If you’re on the fence, here are a few reasons to consider investing in real estate during your twenties.

Lower Down Payments

The majority of banks will require an investor to put at least 20% down on a rental property. It may not seem like it, but that’s a lot of money for a property that may require significant internal and external repairs before it’s commercially viable. Fear not. Options are available for investors of multifamily properties who choose to occupy one of the apartments in the property. Banks will require only a 5% down payment for an owner-occupied property as compared to 20% down for non-owner-occupied property.
Why is this easier when you’re younger? More often than not, you’ll have the flexibility to move into a home and put the work into it than someone older with a family to factor into the equation.

You Don’t Have to Purchase Property

There are plenty of ways to invest in real estate without buying property. Real estate investment companies and real estate investing apps have made it much easier to access real estate investments. Crowdsource investing allows multiple people to invest alongside each other into a property. You don’t need hundreds of thousands of dollars. With only $500, you can start investing in property through crowdsourcing.

Technological Assistance

There’s an app for that. Literally! If you want an app for investing in real estate, it exists! With apps like HappyNest’s, real estate investing can finally enter the 21st century. And when you can access all of the information you need via an app for investing in real estate, the whole process is a lot less intimidating.
If you’re on the fence about investing in residential or commercial property, don’t wait until the opportunity passes you by. Investing in your twenties might be the best thing you ever do.

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