There are many different ways to invest in real estate, and each method has its advantages and disadvantages. This blog post will discuss how creative real estate investing differs from traditional forms and what options are available to investors who want to diversify their portfolios. We will also provide tips for those interested in getting started in creative real estate investing! Learn how to create wealth investing in real estate using these innovative methods.
What Is Creative Real Estate Investing?
Creative real estate investing is a way to make money by buying and selling high-demand properties that have not yet reached their peak. By identifying these types of properties, you can make a profit while also helping to increase the demand for other similar properties. Creative real estate investing is also a way to diversify your portfolio and gain exposure to different markets.
This type of property investing is based on three fundamental principles:
- Identifying properties with potential for redevelopment or expansion
- Investing in properties located in desirable areas or neighborhoods
- Using creative marketing techniques to attract buyers and renters
When properly applied, these principles can help you make more money in real estate while also increasing the value of your properties.
Six Creative Ways to Invest in Real Estate
So, what are a few ways investors can get creative? Some people focus on having a passive (hands-off) real estate investment, while others may want to invest in projects they believe will appreciate value but require more work. Here are six creative ways to invest in real estate.
1. Crowdfunding
There are several ways crowdfunding can be used in the real estate industry. One way is for developers to raise money for their projects by selling shares to many people. Another way is for a real estate investor to buy shares of a property before it goes on sale. Crowdfunding can even be used to finance repairs or renovations on properties.
2. House-Hacking
House-hacking is a way to rent out part of your primary residence to generate additional income that can be used to cover expenses associated with owning a home. Many people use it to live in expensive areas for next to nothing or generate income from homeownership.
3. Owner Financing
This method involves borrowing money from the property owner, who then becomes the primary lender on the property. This approach can be a fast and easy way to get your investment off the ground, as there is no need to go through a bank or other financial institution to fund the investment property.
4. REITs
A REIT, or Real Estate Investment Trust, is a company that invests in real estate. Real estate investors can buy into REITs through various methods, including mutual funds, exchange-traded funds (ETFs), and individual stocks. REITs are often considered safe investments because they are government-regulated and typically have stable earnings.
5. Rent-To-Own
With this type of investment, you purchase a property and agree to pay rent on it over time. This allows new investors to gain experience and knowledge about the real estate market while still benefiting from potential growth in the value of your property.
6. Wholesaling
Wholesaling real estate is buying and selling residential properties without ever technically owning the property. The goal of wholesaling is to make a profit by finding properties and putting in a contract at sellers’ prices, then quickly reselling them to a buyer at a higher price and keeping the difference as profit.
With this real estate investing strategy, it does not matter if the properties are local or long-distance acquisitions. There are many benefits to wholesaling, including access to high-quality properties, diversifying one's portfolio, and working with talented professionals to generate income for you through virtually passive real estate investing.
How to Be Seen in the Real Estate World
How can investors get noticed and find and sell properties to generate revenue? The answer, in a word, is marketing. A well-executed marketing campaign can help attract attention to a property, increase interest, and ultimately result in more sales (and profits).
Creative real estate investors should consider all available marketing channels, including online advertising, social media, print and radio ads, and personal appearances at open houses and other events. In addition to spending on advertising, creative real estate investors should also use lead generation programs and enlist a capable Marietta property management company to their ranks.
Find Creative Real Estate Investing Success With Property Management Services!
Whether you are a seasoned investor or just starting, it is vital to have a plan and know what to look for when investing in real estate. The six creative ways to invest in real estate we've outlined can help get you started, but there are many other options. In addition, you must have a good understanding of the role marketing plays in real estate. Without it, your investment may not be seen by the right people. Finally, don't forget that property management is essential for owning profitable rental properties!
At RW Atlanta, we help investors with a comprehensive plan that focuses on their investment goals. Plus, our experts manage properties and renters, so you don’t have to worry about the daily chore of rental property operations. Reach out soon to learn how our Marietta Property management team is here to help you!
For more information on investing in real estate, download our free ebook, the “How To Invest in Real Estate Guide!”
