Back
Where to Begin
You’ve got a lot to figure out financially and personally.
Before jumping in, consulting a financial advisor is a great idea! They can look over your income, assets, and credit history to advise you on the most relevant way to go about starting your investing journey.
Alternatively, you can always contact your bank and ask for a pre-qualification letter. As preliminary as it may be, it can help you better understand what you can realistically afford. Most bank mortgage associates are willing to answer questions. So if your current financial institution offers mortgages, you should try and speak with a knowledgeable professional for a breakdown of what’s involved.
Now that you have covered the basics, you are ready to start looking for properties.
Some great first-time property strategies include “House Hacking” or “Turnkey Properties''.
House hacking is a strategy where, upon purchasing your home, you find tenants to share your new space with. Their rent is then used towards paying the mortgage. House hacking is an especially great strategy for first-time investors since you can get a mortgage that is written as a primary residence instead of a secondary residence. This typically means better overall terms. You can read more about primary and secondary residences here. Additionally, house hacking is a valuable learning experience that can help investors learn how to identify good tenants and design sustainable rules for future leasing agreements.
Turnkey properties are fully renovated properties that investors can purchase and immediately rent. Turnkey properties are a great option for investors who require immediate mortgage coverage. For turnkeys, a lease agreement is necessary, as is screening prospective tenants. Further, an investor should be financially prepared to deal with any issues that may arise post tenant move-in, maintenance-related, or otherwise.
Both residential options are great for first-time and physical asset investors.
New Opportunities
Investing in real estate in the 2020s isn’t just about purchasing physical assets. Many companies have created new business models that enable individuals to invest in real estate and diversify their portfolios through real estate investment trusts (REITs) and crowdfunding, not to mention real estate investing in the metaverse.
REITs are a great option if you’re looking to add real estate to your portfolio without dealing with the logistics of physical assets.
Crowdfunding is another strategy employed to access vaster real estate investing opportunities.
The Takeaway
If these business models pique your interest, you’ve come to the right place. Landa makes real estate investing accessible and easy and does not require investors to buy physical properties themselves. Landa does the difficult parts for you!
Regardless of how you choose to start your real estate investing journey, you are helping set yourself up for the future.
Ready to start investing?
Sign up for Landa and start investing in real estate.
.svg)
.svg)
.svg)
.svg)
