The real estate investment market is steadily rebounding after the pandemic.
In the first part of 2020, there was a worldwide drop of 33% in real estate investments. For new investors, this meant a lot of great opportunities, but as the market quickly bounced back, acting fast became a necessity. To act fast on real estate investments, you need to have money ready to spend.
In this post, we're going to talk about becoming a real estate investor in 2023. The main thing most people wonder about is how real estate financing, so keep reading because we're going to tackle this problem by telling you your options and how much they're going to cost you.
Why Becoming a Real Estate Investor Is a Good Idea
Real estate is a great place to put your money because it's generally pretty stable and allows you to diversify your portfolio. There are many different ways to invest in real estate, from flipping houses to owning rental properties.
Owning rentals, for instance, provides you with a stable monthly income. House flipping is good because you can gradually increase your profits, so long as you're committed to the work. Even young investors can dip their toes in the water by putting their money into REITs.
How Much Money Do You Need to Start Investing in Real Estate?
How much money you need to become a real estate investor depends on what type of investing you want to do. You can put as little as $1,000 down to invest in REIT shares, which are traded like stocks.
If you want to own property, but can't afford it on your own, you can join an REIG, which may require an investment of at least $5,000. Real Estate Investment Groups allow investors to pool money to purchase a multi-family residence.
To become a true blue investor in real estate properties, you'll need upwards of $100,000. With this, however, you'll own your own property that you can do what you like with.
The most common thing for first-time property investors to do is become a landlord. You'll be responsible for paying the mortgage, finding tenants, collecting rent, and maintaining the property.
In return, you'll get monthly rent to offset the above costs in the short term and make a profit in the long term. Many busy property owners decide to hire property managers to handle the responsibilities of being a landlord, which is usually a cost-effective option.
It's Time to Find Your Real Estate Investments
Now that you have a better idea of what becoming a real estate investor is going to take, you can start saving money. Getting a loan is another option, but you've got to be careful about how much you're borrowing versus what your investments will return.
Are you thinking of investing in a rental home in Salt Lake City? It might be in your best interest to hire a property manager.
Wolfnest is SLC's top full-service property manager. Our services include everything from property maintenance to portfolio management, so contact us ASAP to discuss your needs.
