The most recent data valued the US real estate market at a staggering $33.6 trillion! Investment in real estate is a big pie that keeps getting bigger, and there's no better time than the present to get on board. An investment in real estate will never drop to zero value, and its value only trends upwards in the long run.
If you have extra cash to invest but don't know where to start, why not read the rest of this article? We will show you how to invest 100k in real estate to give you a springboard for your investment decisions.
Investing in REITs
Real estate investment trusts (REITs) are a wonderful starting point for the budding real estate investor. These are essentially small, dividing portions of holdings in a property or multiple properties.
REITs function like buying stock in companies: you own that small portion of the asset and can get dividends proportional to how many REITs you own. You can reinvest the passive income into more REITs or use it for other investment opportunities. You can spend the entire 100k on REITs or buy them with whatever's left over from any other investing strategies on this list.
Buying a Fixer-Upper
$100 thousand is, in some cases, enough to fund the purchase of a beat-up or older property in the sea of Salt Lake City real estate. If you have the stomach and the DIY skills to take such a place and build it back to its former glory, you can potentially sell it for far more than you paid.
There are condos and even some houses available for under 100k! Finding one of these on the Utah real estate market and snapping it up is a great way to secure a foot on the ladder of real estate investments. Once you're in this position, you have several investment choices available.
Renting the house out gives you extra monthly income, but you can take it further. You can borrow against the house to get a downpayment for another property (which comes with more risks and requirements). You can also upgrade the place and try to flip it, and start climbing the ladder.
Using the 100k as a Downpayment
If you have a solid income stream and good credit, you can also use your 100k for a downpayment on a more expensive property. The perks are much the same as affordable housing, except that more valuable properties will generate more income and allow you to climb the ladder faster if you choose that route.
Ask Us How to Invest 100k in Real Estate
Our suggestions as to how to invest 100k in real estate in Salt Lake City are mere guides to help you structure your thinking around all the popular investment strategies. REITs have the lowest barrier to entry and can work alongside any other method. Buying a fixer-upper, something affordable, or financing a more upscale property are all ways to get established in the real estate market.
If you're looking for a partner to help you navigate the process, we can help you. Contact us today for more information and guidance on investing in Salt Lake City real estate.