content-marketing Investing in a rental property can be a lucrative business. But, there is more than one way to invest in rental properties. The most common form of investment is to purchase an existing property and then rent it out. However, there are other ways to invest in rental properties, such as buying and renovating an old property or renting out your own home.
The type of investment will depend on your personal preferences and the risk you’re willing to take. And rental properties can give you a steady income, tax-deductible expenses, boost your balance sheet due to the properties appreciating, etc. Matthew Iovane notes that you’ll have the challenge of managing tenants, possible property damage, etc.
REIGs is a new investment vehicle that offers a diversified portfolio of real estate assets to provide investors with a low-risk and stable return.
Typically, a company builds an apartment block, dividing it into individual condos that they sell to investors. This way, the company has access to financing and can make more properties without worrying about finding buyers for each one. Matthew Iovane explains that investors can buy as many units of self-contained space as they want and get income in return from the rentals.
Also, these real estate firms are responsible for finding and interviewing tenants, maintenance, etc. The investor is free from administrative duties, but they have a regular income.
According to Matthew Iovane, house flipping is buying and selling a property to make a profit and is often seen as a quick way to make money. However, house flipping requires significant investment and time.
House flippers often buy undervalued properties that need minor renovation, such as kitchen cabinets, painting, sanitary ware, etc. After purchasing the property at a distressed sale or auction, they sell it for a higher price. As an investor, you can obtain a quick return. But you should know the ins and outs of this type of property investment to be successful.
REITs are companies that invest in real estate and then sell shares to investors. They generate income from property holdings, which can be commercial or residential. As Matthew Iovane observes, a REIT is not required to have any physical presence on its property. Still, they must actively invest their funds in properties and produce income.
REITs are typically traded on major stock exchanges like NASDAQ and NYSE. But some are sold on regional exchanges like the Toronto Exchange or Montreal Exchange. You can receive dividends on your investment.
The internet has made it possible for people to invest in a property from the comfort of their own homes. Matthew Iovane adds that the real estate market is no longer limited to people with deep pockets. Online platforms give people a chance to invest, even if they have only a tiny amount of money to spare.
Many benefits come with investing in property online. People can support as little or as much as they want without having to leave the comfort of their homes. They can also use these platforms to diversify their investment portfolio and earn more money through rental income and capital appreciation.
Well-known online real estate sites include Fundraise, Crowdstreet, Equity Multiple, etc.
Matthew Iovane is the Founder and CEO of Outpost LTD (UK private portfolio of real estate), a partner at Heaven Sake, an angel investor at Bloc Collective, and the Founder of TwistNclean (rotational cleaning device for Invisalign).
