Why are so many investors choosing real estate investing? Well, it's one of the best ways to build a steady income stream! Since (in most cases) the real estate market isn't as volatile as other investment markets like stocks, investors can count on real estate investments to provide fruitful returns in the long term.
So, it makes sense that many potential landlords seek valuable knowledge about how to get into real estate investing. A good starting point is working with a reputable Atlanta property management company to help grow your investment portfolio. If you're thinking about purchasing an investment property, read on discover the basics of investing for success!
Real Estate Investing 101
Simply put, real estate investing involves purchasing property to generate money. “Real estate” refers to land plus any structures located on that land. However, investing in real estate is different from merely buying a home. Homebuyers are looking for a property they can use as their primary residence instead of a home to rent or renovate and sell for income.
The concept of investing in real estate is quite simple, and it offers excellent returns! Yet, the strategies required for success aren’t as simple as you might think. Once you purchase your first investment property, generating ongoing income and buying more properties requires the right insights.
Types of Residential Real Estate
When looking for investment opportunities, there are different types of real estate to consider. One of the top options is residential real estate, which encompasses any property used for residential purposes. For instance, residential real estate includes:
- Condominiums. Condos are individual residential real estate situated within a condo complex.
- Single-family homes. As the name suggests, these are standalone homes. These structures share no walls with other residences and are contained to a single plot of land.
- Multi-family homes. With multi-family homes, investors purchase a building that includes more than one residence. A typical example of a multi-family property is a duplex or apartment building.
- Townhouses. Townhouses are individual residential units that typically share a wall with other individually-owned residential units.
Investors don’t have to stick to one type of property. As your portfolio grows, operating multiple rental types can benefit your long-term success!
What's the Goal Of Real Estate Investing?
The goal of a real estate investment is straightforward: to make money! However, there are several ways to achieve this.
Investors can purchase property and rent it out to earn income. With successful property management, investors generate positive cash flow and build income with a long-term strategy.
Another way to earn money through real estate investment is by purchasing property and then selling it for profit. You might know this as house flipping! In many cases, making specific upgrades to a property can boost its resale value. Over time, appreciation helps investors sell buy-and-hold properties for a profit.
Some real estate investors also earn money through interest on loans. A common example is when an investor finances the purchase of property on behalf of someone else. The real estate investor makes money by charging interest on top of the money borrowed.
Understanding Real Estate Investment Strategies
As an investor, understanding various real estate investment strategies helps you choose the way you want to invest and maximize returns!
Generally, real estate investment strategies fall into two groups: Passive real estate investing and active investing.
- Active investing is a hands-on way to own and operate properties. This gives investors greater control since they are responsible for managing the property.
- On the other hand, passive investing can be indirect when you invest via a real estate syndication, like real estate investment trusts (REIT) or real estate stocks.
When choosing “real” properties, investors can still make this a passive way to generate investment income. Hiring a property management company to handle the day-to-day demands of operating rental properties means you don’t have to deal with the details while benefiting from revenue! For example, an Atlanta property management group can handle ongoing maintenance, rent collection, repairs, leasing, and renovations.
An Atlanta Property Manager Takes The Stress Out of Investing
There are many ways to generate cash flow with property investments, and one of the best ways is owning a rental property. As a landlord, you can look forward to receiving rental income and boosting your bottom line. However, being a landlord without the help of a professional Atlanta property management company can leave you with a lot of work to generate the returns you need.
Renters Warehouse Atlanta delivers property management services to handle every task, such as property maintenance, rent collection, tenant placement, and more! Growing a significant portfolio won't seem like much work when you let our experts handle the details. In addition, we are here to help you learn more about real estate investing beyond the basics. Get in touch with our team to learn more about how we help investors succeed!
Learn more about investing in real estate! Download a free copy of the “How To Invest in Real Estate Guide.”