Investing in real estate has been and continues to be one of the best investments for all those who want to achieve the long-awaited financial freedom.
Investing in real estate basically consists of investing capital in one or more properties, which implies making a profit and thereby achieving financial freedom step by step, as defined by LaHaus.
What are the ways to invest in real estate?
The advantage of investing in real estate is that there are multiple ways to do it. Here we share some of the main ones listed by LaHaus:
- Escrow: it is the scheme for builders and developers. It consists of transferring the property title to a trustee that manages the real estate project, which will later transfer the units built to the beneficiaries of this group.
It is one of the options preferred by investors because it does not have much operating expense and is suitable for developing real estate ventures with third-party funds.
- Rent or rent: If you have a property in a strategic location and it meets the demands of the market, it can generate good profits. It also allows investors to choose the rental format they want and the duration of the contract. If you want to know more about it, we share with you What is it and how to make a lease?
Consider that if you decide to rent your property on platforms such as Airbnb or Booking, you must invest time in attending reservations and requests from your landlord. If you want to provide excellent service within these platforms, we share with you hosting services, how to be the best host and the best guest.
- Real estate crowdfunding: It is one of the best options for those who start investing in real estate and have little capital. Construction companies that are looking for many people willing to invest small amounts of money in exchange for generating profits in the short and medium term, use it as a collection method.
It is a format that can be understood as the purchase of shares of a property, since it allows a person to buy several fractions and, therefore, become the majority shareholder of a property.
- Real estate investment funds: a scheme for those who have been in the sector longer and prefer to invest in different real estate developments. It works by bringing together a group of participants who contribute significant capital, which is managed by a market specialist.
As they have formidable capital, they are not concentrated in a single type of property, but instead invest in different properties such as residential, commercial or industrial.
Unlike the trust, the funds are created to generate profits for investors, while in the trust a resource is managed until the owner decides to claim it after meeting certain conditions.
- Remodeling and sale: also known as House Flipping is a method for new and used homes. It consists of acquiring a property at a low price, remodeling it and selling it at a higher price.
In the case of a new home, it can be done with the apartments that are delivered without many finishes or without furniture. It is recommended to buy houses on plans to adapt them to the end of the work and generate higher dividends.
It is ideal for those with knowledge of construction and decoration because they can get involved in the remodeling process to generate more profit.
- Buy on plans: It is one of the best options to start investing. This is the stage of the development of a property in which it has not yet been built and the developer is looking for as many buyers as possible to continue.
Even if you pay a lower price, as the project progresses, it will gain value, so you can start offering it as soon as it is delivered to you.
Construction companies usually sell projects in stages and the earlier you buy, the cheaper it will be.
What do you think of these ways of investing in real estate? Which ones have you tried? If you want to know other forms of investment for these times we live in, we share with you Robert Kiyosaki affirms that ‘it is time to get richer’ with the crisis and explains what to invest in.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.