There has been a general upswing in the real estate market for the past few years and the time is right for you to be an investor. But most of us would love to avoid the hassles of being a landlord. The easiest way of achieving that can be found in the following article. There are massive gains to be had if you invest in the real estate market shrewdly. For more information and ideas about real estate investing you need to visit Real estate events Dallas.
If you are asking yourself how to become an investor without owning the physical property, we have you covered. Let us begin!
Hire the property manager
You do not need to buy the physical property. Yet, you can still invest in real estate. It is ideal for investors who are seeking exposure. All you need to do is buy rentals and then hire a specialist property manager to do all of the heavy liftings that come with the job description.
A property manager will help you save on the time and money involved in putting out fires and hassles involved with property dealings. A property manager will deal with the vetting of the potential tenants, minor repair and maintenance works and the collection of the rent. Property managers are also responsible for scouting the next profitable property.
However, you need to keep in mind that property managers do not come cheap and you will have to part with around 8-10% of the rent collected as fees for the expert. But it the price you have to pay to enjoy the gains without having to take the trouble of being the landlord. Therefore it is ideal that you selectively invest in properties that provide enough cash inflow and sizeable returns to keep up with the investment.
About the real estate notes
You invest in real estate notes through an individual investor or through banks. You need to review the offer document carefully before investing. That is another way you can invest in real estate but not be involved with the actual brick and mortar building. When dealing with an individual investor, you need to make sure the investor will actively pursue various options and properties, and you need to keep in mind that you will essentially be buying debt at price points below the retail investor norm in case you are going for the bank option.
About the hard money loans
You might not be a fan of these ideas, and you have a lot of cash to lend. You can consider loaning hard money. This strategy will provide you with ample exposure as well as create a base of the network for your future venture diversifications. However, you need to understand that with this strategy the return of investment wouldn’t be as great as the other options.
You can loan hard money directly to a real estate investor, and you will receive around a 12% return of the borrowed money. It is quite a comfortable option and set up if you know the investor personally. You can mitigate risks by properly vetting the investor.
Real estate online
Similar to investing in REITs, you can now invest in the new companies that have cropped up all over the internet. There are websites like the Realty Mogul and Fundrise that will enable you to get into real estate investment plans without the added hassles of being a landlord.
Make sure of all the necessary details with due diligence before making a choice. Vet your options properly before investing.