Simple Ways to Invest in Real Estate
Real Estate is the #1 easiest to understand investment in the world. No complicated equations, no unyielding regulatory boards. Just buy some land and wait. What’s great about it is that there is an opportunity out there for everyone: You just have to be patient and ready to take advantage of the opportunity when it reveals itself.
Here are some easy ways to invest in Real Estate.
1. Buy a Rental House
It sounds simple enough, don’t you think? Buy a house and rent it out to people.
Well, it is – kind of. Find a house that needs some TLC, get a small loan against it or buy it outright, then fix it up and rent it out.
First thing you need to do is FIND A HOUSE. BTGH has a huge selection of houses available to start from. We are an investor driven market, so our inventory is priced BELOW retail value for quick movement. Many of our Tampa wholesale properties have been rehabbed and are tenant move-in ready. Others have been cleaned up and are ready for rehab.
Regardless of the path you choose, if you buy from us, you’ll get our full attention and we’ll be happy to answer all of your questions about the industry, profit margins, and processes.
Something to keep in mind though is that rentals are a LONG-TERM investment. There isn’t a lot of money to be made up front in the rental game, but over time, and in quantity, this can be a very lucrative endeavor. The secret to success in the beginning though is ELBOW GREASE. That’s right – roll up your sleeves and get dirty. Buy a house that you can afford, and do the work yourself to get it rental ready.
Don’t know how to do something? That’s why God invented Google.
(Ex: “How to install a kitchen counter-top.”)
Once you’re done fixin’ stuff, RENT IT OUT. Easy-peasy.
Marketing Your Rental Property
Ha, ha! Ok, so maybe you’ll have to do a little marketing to rent it out… and then you’ll have to maintain it for your residents, but if you rehabbed the house yourself, then maintaining it will be a breeze – If something breaks… go fix it.
To market your new rental home, go down to Walmart and get 3 “FOR RENT” signs. Put your phone number on them, put one in front of the house, and put the others on main roads leading to the neighborhood. Your phone WILL ring.
Other secrets to success are:
- Keep money in the bank for problems down the road. You’ll need a new A/C unit, refrigerator or stove sooner or later. Accept it now, so that it’s not an inconvenience later.
- Rent your property AT or BELOW market value. One awesome, long-term tenant is worth much more than a series of short-term tenants paying a couple of dollars more. Each new renter equals about 2 months of lost revenue.
- Don’t be lazy. Being your own property manager is tough work. However, if you’re in a financial position to sacrifice 8 to 10% of your rental income, it might be worth it to hire a property manager.
- Be empathetic, but FIRM with your tenants. Their problems are not your problems, unless you allow it. The #1 reason people fail as landlords is because they’re uncomfortable asking for the money. If you’re uncomfortable, hire a professional (aka: property manager).
There you go: Easy Peasy. Stick with it and in 10 or so years, you’ll have a nice little money maker, because rents will probably have gone up, while your mortgage has stayed the same. Multiply that by 10 or 15 houses, and you’ll be retiring in Costa Rica in no time! !