If you’re a woman looking for a new source of income or a smart investment, you should invest in real estate. Real estate is generally a low-risk, high-return investment, and there are many options to suit different budgets and lifestyles. Taking the leap and becoming a real estate investor in 2020 will be challenging, but if you’re committed, it can be a lucrative opportunity. Here’s what you need to know before you get started!
Decide Active vs. Passive Real Estate Investment Strategy
There are two main types of ways you can make money off of real estate investments: passive, or active. With passive, you purchase the real estate and hire a property manager to do most of the work for you. They’ll deal with the tenants and maintenance needs, while you profit off rent income. You can also invest in real estate crowdfunding or buy shares of a REIT. This doesn’t mean you’ll be able to invest without doing any work, but you won’t be taking an active role in the investment. On the other hand, if you take an active approach to real estate investing, you’ll have to do more hands-on work. One way you could do this is by managing the property you own yourself. Another common real estate investment strategy is to fix and flip. This involves buying a home or other property—usually, a property that’s of low value—and making extensive repairs and remodels then re-selling for a profit. Stay Informed on Real Estate Rules and Regulations in Your Area The real estate industry is heavily regulated, and every state and city come with their own rules and regulations. It’s vital that you have a thorough understanding of these regulations and that you stay up-to-date as they are constantly changing. Some of the rules you’ll definitely want to understand include those related eviction practices, security deposits, and insurance coverage. Be Strategic When Choosing Location Location isn’t just important to consider when it comes to rules and regulations. It’s also key when it comes to thinking about how much money you’re going to make. Your first instinct might be to buy property that’s close to you, but that won’t always be in your best interest. The price of property alone doesn’t determine if a location is the best investment. There are other factors to think about such as the market’s history of real estate appreciation, the price to rent ratio, and the current real estate trends. Build a Real Estate Network You can’t build a successful real estate business on your own. It will take a village to make it happen! You’re going to need an accountant to handle your real estate taxes, a home inspector, a real estate agent you trust, and a lawyer to help you stay updated on local real estate regulations. Each of these people will play a vital role in the success of your real estate investment. Use Women Pushing Dirt as a Resource Investing in real estate empowers so many women. Let this year be the one that you finally take that leap and become a real estate investor! For more information on how you can work in real estate, keep following Women Pushing Dirt. Our digital magazine inspires women to chase their dreams and equips them with the tools they need to achieve their goals. We are the next step to your future!