Real estate: Is it a rich man’s market?

By
Real Estate Agent with Lebrau Property

It might seem a little intimidating, thinking about investing in real estate, but the reality is far from it. Even students are able to invest in real estate, and if someone who is bogged down by student loans and have no real job can become an investor, it goes to show that anyone with the passion and drive for it can also invest in real estate. It is not only for the wealthy and the privileged.

 

Education is the most important factor
Before you rush headlong into making the first purchase, read up on the industry, go through a real estate marketing guide to determine if it is meant for you. Not everyone is made to be an investor, but if you find it interesting, it’s time for you to take it to the next step.

 

Purchasing isn’t the only way
For obvious reasons, people are turned off by investing in real estate because they think they have to fork out a huge amount of money for the down payment, and continue to make monthly payments for the next thirty years. The reality is that one can invest without purchasing and there is more than one way to do it. There are exchange-traded funds which is a collection of stocks in one single investment and you can purchase as many as you are financially comfortable with. Or you can look into the low risk real estate mutual funds, invest in a real estate based company, look into home construction, invest online, etcetera.

 

Purchase together
If you have a few friends who are planning to invest, there is no reason why you cannot band together and purchase a cheap property (or one that fits your cumulative budget) and rent it out. However, be wary of the partners you choose and make sure they are trustworthy, if not reliable individuals. You don’t want to find yourself deep in debt when some of them bails. Furthermore, there is a higher risk in renting as the location has to be prime. In the event the property does not get rented out, you will not be losing money, as real estate will appreciate in time. The only problem is, you cannot estimate how much and how quickly you can resell at a profit, but like all investments, it comes at a risk.

 

Renting your rented room
A lesser known investment method is to dress your current apartment up so it meets the standard of a basic AirBnb and simply list it on renting sites. You can choose to crash at a friend or family’s house for the night and rake in the nightly fee for accommodation. This is a great way to build up a fund for yourself so you can rent more places in the future to rent out. If you are currently staying someplace board-free, you can also capitalize on it. For instance, you can convert a garage into a studio or build a shed on your property to rent out.

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Rainmaker
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Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Wealth can help but that doesn’t mean one should not try. That happens to be true with many things in life.

Jul 30, 2019 07:55 PM #1
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Craig Lebrau

Property Geek in Upper East Side NYC
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