The Ultimate Guide to Invest Strategically in Real Estate

The Ultimate Guide to Invest Strategically in Real Estate

Real estate investment appears lucrative and rewarding to beginners. But many get confused over how to invest in real estate and constantly look for guidance. Mike Bolger desires to provide the readers and clients valuable assistance for investing safely in real estate. Most people see buying a house as an investment. It is one of the investments; however, the real estate market is not limited to that only. Several investment options like rental properties, online real estate platforms and others exist in the market. This article provides a comprehensive guide to help you invest in a less risky and more rewarding way. 

1. Residential Rentals

If you want to invest in real estate, residential rentals are one of the most rewarding options. Owning residential property allows you to profit from your investment by receiving monthly rent payments from your renters. Individuals with renovation abilities and the patience to oversee renters may find it is an excellent prospect. 

Before investing in rental properties, know that initially, it will require massive expenditures. The costs of buying property, maintenance charges, taxes, coverage for vacant months and additional house interior take a lot of financial capital. Managing so many finances and tenants can be a tedious job. When you can handle the financial and emotional burdens of organizing a residential rental, you will have a steady source of income.  

2. Real Estate Investment Trusts (REITs)

REITs are ideal for those looking for real estate exposure without having to make a typical real estate purchase. REITs own and deal with income-producing properties. A REIT can have a diverse portfolio of assets, including shopping centres, commercial properties, apartments, offices, hospitals, and even residential properties.  

A REIT is formed when a company purchases and operates income properties with funds provided by investors. REITs are bought and sold on major markets like stocks. Purchasing REIT shares gives you real estate experience and profit without the burden of doing it all yourself. The real estate investment trust (REIT) industry has been here in Canada for more than 25 years. REITs make real estate more affordable while also providing a considerable dividend distribution. 

3. Property Flipping  

Property or house flippers purchase properties to hold them for a short time before selling them for a profit. House or property flipping is not a usual task that you can do without real estate experience. This type of investment requires you to work with professional realtors. Identifying prospective properties that can give profit in future requires special skills.  

Beware of the risk involved in this process. Flipping properties requires investment in renovation and restructuring for a profitable sale. You can make a good profit by finding a residential home that needs little revamp, and you can renovate it promptly. Even though house flipping seems attractive, it is not always profitable. You are advised to contact a skilled Waterloo Realtor® before investing your wealth in flipping property.  

Turn Your Property into Airbnb Rental 

Renting residential property to tenants is worthwhile, but you know a more profitable idea is: Airbnb renting. The primary advantage of renting out your investment property as an Airbnb is a quick profit you wouldn't get from a long-term tenant. Airbnb investing is a real estate investment technique in which investors buy rental properties and market them on Airbnb. Also, if you own multiple properties, Airbnb is a great way to earn profit from all these properties.  

Check local ordinances and condo board guidelines before renting out your home on Airbnb. Following the rules for short-term rentals, you can safely proceed to earn profit from it. Airbnb is more promising than renting an unfurnished property for the long term. Cash flow is one of the most significant advantages of renting your property on Airbnb. A well-furnished property in an attractive location has the potential to produce considerable revenues.  

Find a Realtor in Waterloo®. All the above-mentioned real estate investment ideas can prove valuable and beneficial. If you are interested in investing in this sector, contact Mike Bolger, a qualified and experienced real estate agent. Mike will ensure that your investment goes for a profitable return.


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