According to the Realty Shares report, 2017 Real Estate Investment Survey, more than 70% of Americans think investing in real estate is more difficult than investing in other asset classes.
It’s true that real estate investing requires planning, negotiations, research, inspections, bank loans and mortgages, and other processes. However, when you take into consideration the rewards and high return-on-investment, you’ll find that it’s only as difficult as you allow yourself to believe and the only thing stopping you is your attitude.
Once you’ve overcome the fear and hesitation, the processes don’t feel as overwhelming. If you’re interested in Seattle real estate, here’s a guide to help you begin:
Determine How Much Time and Money You Can Spend
You may already have an idea of the type of real estate property you want to invest in. However, before you decide, you need to make sure that the property fits your budget and you have time to devote to it.
So before anything, do your research and identify which real estate investment options are most accessible to you.
Real Estate Investment Options
- Rental properties
Many people new to real estate investing start with rental properties because they’re less complicated than other real estate investment options. You just need to buy property, find renters, and collect rent each month. Of course, you’ll also be responsible for the maintenance of the rental space; it would be wise to invest in property that won’t eat away at your earnings due to the number it repairs it demands.
- House flipping
Flipping refers to purchasing asset with the intent to sell it for a quick profit. With house flipping, choose a property in Seattle that’s selling for low which typically means houses that were neglected and not fixed up before being put up for sale. By buying it and investing in its renovations, you’re raising its value. And once you have, sell it for a profit.
Real Estate Investment Trust or REIT is a company that owns and operates income-producing real estate. You can invest in REITs by either purchasing their shares or by investing in a mutual fund that specializes in public real estate. Properties that REITs typically own and finance are office buildings, hotels, hospitals, apartments and industrial facilities. When REITs generate income by renting, leasing, or selling the properties, 90% of the taxable income must be distributed to the shareholders on a regular basis.
- Real-estate wholesaling
As a real-estate wholesaler, you would contract with a home seller and market the home to potential buyers and then assign the contract to one of them. As the middleman, you would make a profit based on the difference between the seller’s contracted price and amount the buyer paid.
Do Your Homework
There are other real estate investment options available to you such as multi family homes or renting out a space on your property. It pays to do your homework before you ultimately make your decision. But once you’ve chosen the type of real estate investment that appeals to you, it’s time to start doing your research on the best real estate neighborhoods in Seattle. After all, if you’re going to invest in property, whether it’s for rental or flipping, you’ll want to choose from areas that are most profitable.