Investing in real estate remains one of the shrewdest ways to grow your money. It’s far less volatile than the riskiest investments (aggressive stocks, crypto, etc.) yet far more satisfying than the safest investments (ETFs, bonds, etc.). Call it the “Goldilocks” way to invest your money. And unlike those other financial engines, the real draws with real estate investments are the properties themselves – owning your own chunk of land, which you can leverage however you choose.
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There are several ways to invest in real estate: REITs, income properties, house flipping, house hacking and, of course, good old-fashioned home ownership, a savvy investment in its own right.
To ensure you pick the right option and invest your money wisely, you need to keep a few essential components in check. In this article, let’s discuss the three key figures to utilize when investing in real estate.
An Experienced Financial Advisor
No one knows your finances better than you – except, perhaps, for an experienced financial advisor. You can read a hundred financial blog articles listing 101 ways to invest your money. Still, until you sit down with a financial advisor to test their viability against your unique financial situation, those tips aren’t worth more than the digital page they’re printed on.
The bottom line: If you’re putting a sizeable amount of your hard-earned money on the line, speak with financial experts first. They can tell you whether an REIT or REIG works better for you, whether purchasing a rental property or renting out an existing portion of your home makes more sense, etc.
The Best Real Estate Company in Your Area
If you plan to buy residential real estate – either to flip, rent or share with renters – you need the best possible representation in your corner. The job of a real estate agent isn’t simply to push available listings across your desk. Your realtor needs to be a guide, a tirelessly innovative searcher, an advocate and a warrior-like champion during bidding wars. In other words, they need to find you the best possible investment opportunity at the best possible price.
Therefore, settle only for the best. If you live in Toronto, for instance, search for the best Toronto real estate companies, and chat with them about your investment plans. Develop a game plan for nabbing a lucrative real estate opportunity.
Whether you’re house-flipping, sprucing up a rental unit or finishing a basement to make some passive income, you’ll need trustworthy contractors by your side.
Transparent contractors are worth their weight in gold. For instance, if you plan to flip a house, you need to know a) how long the project will take and b) an accurate all-in budget to determine whether the property will net a profit. And when acquiring a rental unit or finishing a rentable suite in your home, having a trustworthy contractor allows you to plan a timeline and price accordingly.
With a talented money person at the helm, an expert real estate agent in your corner and a transparent contractor on speed dial, investing in real estate becomes much easier.