What is a Real Estate Investment?

What is real estate investment?

If you are considering becoming a real estate investor, you’re likely aware of how lucrative it can be. With the right investments, you can make an immense amount of money in a short time. The only problem that you might have in the beginning is learning all there is to know about real estate investing and getting started. Here is an overview that can be helpful.

Types of Real Estate Investments

There are many types of real estate investments available. Here are some of the most popular types of investments to consider:

  • Flipping houses – This entails purchasing properties in need of rehab for a low price, fixing them up, and selling them for a profit
  • Renting out houses & commercial buildings – In this scenario, you would essentially be a landlord, unless you opt to hire a property management company
  • REITs – Real estate investment trusts work similarly to stocks and exchange-traded funds
  • Real estate mutual funds – This type of real estate investment only requires a small investment for a large return
  • REIGs – Real estate investment groups are clubs formed by individuals to invest as a group
  • RELPs – Real estate limited partnerships are similar to REIGs, as they’re real estate investments in which multiple individuals pool their money together to invest

How Do You Get Started as a Real Estate Investor?

To get started as a real estate investor, you should first perform as much research as possible. The more knowledgeable you are, the more successful you’ll be. Once you’ve learned as much as possible, you can create an informed strategic plan and get started. If you’d like to get started as a landlord, and you want to avoid property management, contact us at Turbo Tenant.

What Qualifies as a Real Estate Investment? 

To qualify as a real estate investment, the transaction must involve the sale or rental of a residential or commercial property. Usually, a person who regularly engages in these types of transactions is referred to as a real estate investor. Real estate investors participate in these types of opportunities as a way to earn money, and it’s the primary source of income for some.