20 Different Ways to Invest in Real Estate
The term invest is a verb that is defined as:
“Definition of invest
(Entry 1 of 2)
1 : to commit (money) in order to earn a financial return
2 : to make use of for future benefits or advantages invested her time wisely
3 : to involve or engage especially emotionally were deeply invested in their children’s lives
: to make an investment
invested; investing; invests
Definition of invest (Entry 2 of 2)
1 [ Medieval Latin investire, from Latin, to clothe ]
a : to array in the symbols of office or honor
b : to furnish with power or authority
c : to grant someone control or authority over : vest
2 : to endow with a quality : infuse
3 : to cover completely : envelop
4 : clothe, adorn
5 [ Middle French investir, from Old Italian investire, from Latin, to surround ] : to surround with troops or ships so as to prevent escape or entry”
In this blog, the term invest is looking at real estate investment and how to make money on real property. There are many different ways to invest in real estate. Here are 20 examples:
- Fix and flip: Find distressed properties, purchase, renovate, and resell.
- Residential Rental: Rent out a single-family home, duplex, or apartment building.
- Land development: Land that is now being built up into a subdivision. By a piece of land and sell off the lots for a profit.
- Commercial lease: Malls, strip malls, office buildings, etc. are all great places to collect passive income.
- Delinquent taxes: Check with your local courthouse and state regulations about how to take possession of property with unpaid taxes.
- Foreclosure: A homeowner doesn’t pay their mortgage, the property is then bank property, and some banks will put on the market for reduce prices.
- Mobile home parks: Typically, the homeowner owns the mobile home, but must pay a rent on the piece of land- or the lot.
More and other different ways to invest in real estate without actually having a piece of property directly attached:
- Private money lender (PML): A person has cash to loan to an investor then the loan is repaid back to this person with interest. All terms are negotiated between the loaner and borrower.
- Hard money lender (HML): This is like a bank but for loaning to distressed properties with renovation needs.
- Wholesale: Basically, a person finds a property, negotiates a purchase price, will put the property under contract and then sell the contract to another person who will ultimately purchase the property.
Sometimes people don’t want the risk of loaning money or taking on the risk of holding the piece of property solely for themselves. Read further for different ways to invest in real estate.
Working with others:
- Real Estate Agent: This person has been trained in real estate, knows the market, and will help people purchase and/or sell property.
- Real Estate Broker: This person has more specialized training and oversees a group of real estate agents.
- Seller financing: A homeowner may be interested in acting as the bank so the buyer pays the seller directly and the buyer is now the owner of the property.
- Joint Venture: Two or more business entities come together to create a partnership to purchase, renovate and resell a property together.
- Prehabbing: At times a property may be sold with contents in place. An investor may purchase and get the property ready for rehabbing, thus the term Prehabbing.
And the final different ways to invest in real estate can be from working with people directly.
- Rent part of your own home: Perhaps you have a guest room that can used for someone to live there. Renting for short terms stays may help with additional income.
- B&B: Bed and Breakfast type of houses tend to be a charming and unique way to stay somewhere. A homemade breakfast is usually included.
- AirBnb: Again, opening up your home, but this time for a much shorter term of stay, such as an overnight or two like in a B&B.
- Storage facilities: Anyone who has “too much stuff” is probably looking for a storage facility. These can be climate controlled or not, but the same thing is that a storage facility should be secured and safe from rain, wind, and unwanted critters.
- Fortune Builders: If you have thought about any of these different ways to invest in real estate, but not sure how to get started, then look at the Fortune Builders website. https://www.fortunebuilders.com/ There are initial seminars that are all over the country on a consistent basis; check out the website or fill in your information to be in their email list.
Right now Reel Property Solutions, LLC has several different ways to invest in real estate. First, fixing and flipping distressed properties; second, Fortune Builders has educated about taking possession of properties with delinquent taxes; third, wholesale to other parties and vice versa; fourth, Reel Property Solutions, LLC is in the works with another real estate investment company to set up a Joint Venture agreement; fifth, if the right opportunity came along, a Prehabbing opportunity is something to consider.
If you or someone you know is needing to sell their property, contact us!
Reel Property Solutions, LLC is always seeking Private Money Lenders who want the opportunity to earn a double-digit return on their investment.
If you are a real estate investor wanting to work in a Joint Venture, contact us!
email@example.com or call 507-218-8788 or 507-722-1511 to discuss!