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Real Estate

3 simplest ways to add diversity to your real estate investment portfolio

The real estate business is for the rich and famous, right? Wrong! Interest, research, good networks, and effort are all it takes to delve into the real estate investment world, at least at the beginning. The likes of Donald Bren, Stefan Soloviev, and Sam Zell, just to name a few, all began from somewhere.

Granted, you have been fed the lie that unless you’re rich, real estate isn’t for you. Watching the market makes this lie seem real. But what if we redefine real estate investment? Moving away from the daydreams of buying houses in California to realistically evaluating what our local real estate markets really need and if you can fill an aspect of the existing gaps. Business is all about providing the right solutions!

1. Rentals

Feels like the most obvious, yet it’s the most misunderstood real estate concept out there. You don’t have to own a property to rent it out. “Huh?” I see your confusion, but go with me for a minute.

Renting or letting can be managed by anyone. Think agents or real estate management companies. Depending on how your local market works, you can explore providing agency services to building owners with three or fewer properties.

2. Agriculture

Real estate investment means making money from anything that directly links to land as capital. This includes buildings built on land, and also plants grown on land. So how is agriculture a real estate investment? Agriculture is one way you can use your piece of land to make some money.

Large-scale agriculture is expensive. You may not be interested in fully immersing your time and resources in it unless it’s something you have always wanted to do. But did you know you could lease your land out to agricultural firms and other people in the industry looking to expand their operations without needing to purchase land? Leasing your idle land is a great way of making passive income in real estate.

3. Flipping

Unlike the first two that require minimal input, moneywise at least, flipping needs you to put in more to get out more. It is becoming one of the most popular real estate investment trends in the US today.

If you have significant savings, look for a house you can do a fixer-upper on and then resale for a reasonable profit and keep going. Besides the initial investment required, research is also essential. Also, make sure you’ve done your due diligence before putting your money in a fixer-upper. You don’t want to be stuck with a house that requires extensive renovations and repairs before you can make a profit.

You need to educate yourself, learn how to identify upcoming markets, and negotiate purchases and resales. Despite the challenges involved in flipping properties, this is a great way to maximize your real estate investment profits.

Conclusion

Real estate investments offer robust long-term and short-term returns. They can be risky and sometimes costly, but that shouldn’t stop you from diversification. Put in the initial work and you’ll soon be smiling all the way to the bank.