How To Get Into Real Estate Without Buying A Big Apartment Building
There are many ways to get involved with real estate investing without having to purchase a huge apartment building. Some of these methods involve buying shares in a REIT, while others involve buying a property. The choice depends on how involved you wish you to get with the investment.
Invest In An REIT
A REIT is the most stress free way to invest in real estate. A real estate investment trust (REIT) is a company that has holdings in many different types of real estate related investments. Shares of the REIT are offered for sale. The person who buys the share in the REIT, therefore, has exposure to a wide variety of real estate without having to invest in them all separately.
You can purchase shares of a real estate investment trust just like any stock. The big advantage to owing a REIT is that you don't have to worry about maintaining property, collecting rent, paying taxes, or anything else that comes along with owning physical real estate.
Buy A Vacation Property
A great way to get started in real estate investing is to purchase a vacation property. This can be used for your family as an enjoyable place to visit, and when it is not in use you can rent it out. This is a great way to get extra income without having to deal with full time tenants. You can advertise the property online on vacation rental websites. People might rent it for a week or two at a time. This will help you pay for the property, and allow you to get the sense of what it is like to be a landlord.
A Two Family Home
A two family home is a great way to generate income that can help pay off your mortgage. The advantage to buying a two family home is that it is all one property, so you have fewer things to take care of then if you were to purchase a completely separate house. There is one roof, one foundation, and a single septic system.
Another advantage to owing a two family home is that you won't have to travel to do any repairs. If your tenant has an issue, you are right there to address it. Also, because you will have a full time tenant, it will be a great learning process should you ever decide to move forward and purchase stand alone rental properties.
Remember, it is important to learn how to properly vet potential tenants. You should ask for references from prior landlords, their current employment status, and whether or not they have animals. You should also do a credit check. For more information, visit sites like http://www.primerealtygroupinc.com/.