2 easy ways to invest in real estate

Investing in real property is one of the safest investment if you are willing to invest. Real estate market is indeed generally steady and will always go up again in case of economic crisis because properties will always be worth something. In addition, real estate investors don’t have to worry that much about inflation, especially if properties are managed properly, as the value of real estate will continue to appreciate at rate that can fight off inflation and still offer gains for the owner.

Here are the two easiest ways you can invest in real estate :

1. Invest in a real estate portfolio 

A real estate portfolio is a collection of different investment assets held and managed by the owner or a real estate investment management company such as BaltimoRealEstate LLC for the purpose of earning monetary returns.

Investors who intend to build their own real estate portfolios should expect years of real estate purchases, sales and renovations before they can achieve their desired financial goal. Whereas, investors investing with a real estate investment management company such as BaltimoRealEstate LLC do not have to go through the difficulties of buying, financing, renovating and renting the properties. The property management firm oversees the investment from A to Z : buys or builds a set of properties, allows investors to purchase the properties through the company, manages the units, handles maintenance.

There are various benefits associated with building a real estate portfolio. First, the portfolio will not decline because of one bad investment making this type of investment one of the safest investment. Second, real estate investments usually provide a steady cash flow. Lastly, over time, properties added to the portfolio will appreciate in value.

To sum up : investing in a real estate portfolio is much more hands-off and still provides income and appreciation.

• Ideal for : people looking to accumulate long-term wealth.

2. Buy a property to rent it

Buying rental property is the most basic to invest in real estate.

There are a few advantages to owning a rental property, but those advantages are powerful. Buying a property to immediately rent it can indeed be profitable when the property is carefully chosen to make it possible to repay the monthly installment of your loan. Rental properties indeed provide regular income, especially when the mortgage has been paid off completely. In addition, the value of the property usually increase over time due to changing demands –in some areas, the value may even rise significantly over the course of a few years.

However, there are also a number of disadvantages to owning a rental property. First, unless you hire a property management company, it requires a lot of time and patience. A landlord must manage the property : interview tenants, make sure tenants pay their rent and do not damage the property, endure vacancies.

In addition, investing in a rental property is a concentration of assets most of the time. It indeed takes a significant portion of the landlord’s net worth to fully own a rental property. However, concentration of assets is not a smart investment strategy, especially if the  neighborhood where the property is located goes downhill.

To sum up : rental properties provide regular income but can become a constant headache when managing tenants

•  Ideal for : people looking for an additional monthly revenue, having the patience to manage tenants.

Sources :

• https://www.fortunebuilders.com/building-substantial-rental-portfolio/
• https://www.investopedia.com/investing/simple-ways-invest-real-estate/
• https://www.thesimpledollar.com/the-advantages-and-disadvantages-of-owning-a-rental-property/