{"id":12320,"date":"2019-09-30T16:38:50","date_gmt":"2019-09-30T23:38:50","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=12320"},"modified":"2026-04-06T09:08:30","modified_gmt":"2026-04-06T16:08:30","slug":"types-of-real-estate-investments","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/types-of-real-estate-investments\/","title":{"rendered":"6 Types of Real Estate Investments You Should Know About"},"content":{"rendered":"<p>Curious about investing in real estate? You\u2019re in good company. By the end of 2018, investors accounted for <a href=\"https:\/\/www.corelogic.com\/blog\/2019\/06\/special-report-investor-home-buying.aspx#_edn1\">11.3% of home sales<\/a> in the U.S. housing market, a 20-year high, according to June 2019 data released from <a href=\"https:\/\/www.corelogic.com\">CoreLogic<\/a>, an Irvine, California, company that has analyzed housing industry statistics since 1999.<\/p>\n<p>What\u2019s more, small investors of the \u201cmom and pop\u201d variety\u2014meaning they\u2019ve bought 10 homes or less over the past two decades\u2014have <a href=\"https:\/\/www.corelogic.com\/blog\/2019\/06\/special-report-investor-home-buying.aspx#_edn1\">increased their share of homebuying<\/a>, particularly targeting starter homes, this data shows. With <a href=\"https:\/\/www.jchs.harvard.edu\/state-nations-housing-2018\">43.1 million renter households<\/a> in the United States, real estate investors continue to be vital to the housing market.<\/p>\n<p>Real estate is generally seen as a solid long-term investment because, despite fluctuations in the short term, it\u2019s historically less volatile than other options like stocks over time. However, <a href=\"https:\/\/www.investopedia.com\/investing\/reasons-invest-real-estate-vs-stock-market\/\">real estate is also less liquid<\/a> and costs more money upfront.<\/p>\n<p>If you\u2019ve thought that terms like fix and flips, owner-occupied rentals, and REITs sound like a foreign language\u2014or if you\u2019re eager to dip your toes in the investment pool but unsure where to start\u2014consider this a primer on most common types of real estate investments so you can learn more about this popular method of potential income.<\/p>\n<figure id=\"attachment_12323\" aria-describedby=\"caption-attachment-12323\" style=\"width: 700px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-fix-and-flip.jpg\" target=\"_blank\"><img decoding=\"async\" width=\"700\" height=\"400\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-fix-and-flip.jpg\" class=\"attachment-content size-content\" alt=\"A fix and flip that is a type of real estate investment.\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-fix-and-flip.jpg 700w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-fix-and-flip-64x37.jpg 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-fix-and-flip-128x73.jpg 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-fix-and-flip-192x110.jpg 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-fix-and-flip-432x247.jpg 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-fix-and-flip-500x286.jpg 500w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><figcaption id=\"caption-attachment-12323\" class=\"wp-caption-text\">Source: (Mike Yakaites\/ Pexels)<\/figcaption><\/figure>\n<h2>1. Fix and Flips<\/h2>\n<p>Of all types of real estate investments, this likely comes to mind first, thanks to home design TV shows where people buy a distressed property and renovate it for a profit. According to<a href=\"https:\/\/www.attomdata.com\/\"> ATTOM Data Solutions<\/a>, which curates a comprehensive nationwide property database, <a href=\"https:\/\/www.attomdata.com\/news\/most-recent\/2018-year-end-u-s-home-flipping-report\/\">207,957 single-family homes and condos<\/a> nationwide were flipped in 2018.<\/p>\n<p>But flipping a property is a tough initial lesson for the new investor, says <a href=\"https:\/\/www.homelight.com\/agents\/chad-dannecker-ca-01459513\">Chad Dannecker<\/a>, a <a href=\"https:\/\/www.homelight.com\/san-diego-ca\/top-real-estate-agents\">top-selling agent in San Diego, California<\/a>, who specializes in investment properties.<\/p>\n<blockquote><p>\u201cYou\u2019ve got to know what you\u2019re doing. And if you\u2019re a total novice, it\u2019s just one of those things that it\u2019s good to know that you might do this first one gratis, just to learn.\u201d<\/p><\/blockquote>\n<p><b>Pros:<\/b><br \/>\nYou can make a significant amount of money within a few months, based on your renovations and the state of the housing market. Although ATTOM notes that the average return on investment for flipping continues to decline to an almost <a href=\"https:\/\/www.attomdata.com\/news\/market-trends\/flipping\/q1-2019-home-flipping-report\/\">8-year low<\/a>, there\u2019s still a profit margin. Homes flipped in Q1 2019 sold for an average of <a href=\"https:\/\/www.attomdata.com\/news\/market-trends\/flipping\/home-flipping-report-q2-2018\/\">$60,000<\/a> more than what the home flipper paid to buy them, for an average gross return on investment of 38.7 percent, this data shows.<\/p>\n<p><b>Cons: <\/b><b><br \/>\n<\/b>This is one of the most <a href=\"https:\/\/realestateinvestingtoday.com\/wp-content\/uploads\/2019\/06\/ROI-2019-20.pdf\">cash-intensive areas of real estate<\/a>, according to the <a href=\"https:\/\/nationalreia.org\">National Real Estate Investors Association<\/a> (National REIA), a nonprofit trade association based in Cincinnati, Ohio, that represents about 40,000 individual investors nationwide. That <b>$60,000 average from ATTOM Data Solutions does not include the cost of rehab and renovations<\/b>, which you can expect to run you between 20%-33% of the home\u2019s value after repairs <i>if you\u2019re a veteran flipper<\/i>. For a more detailed rundown on flipping ROI, check out HomeLight\u2019s guide: <a href=\"https:\/\/www.homelight.com\/blog\/how-much-can-you-make-flipping-houses\/\">\u201cHow Much Can You Make Flipping Houses?\u201d<\/a><\/p>\n<p>Fixer-uppers often take twice as long and cost twice as much as expected. Lenders often ask for a <a href=\"https:\/\/www.homelight.com\/blog\/real-estate-investing-for-beginners\/\">higher down payment<\/a> (such as 20 to 25 percent) for an investment property. Plus, as the market flattens, that affects your profits. \u201cWe had guys making $100,000 to $200,000 a pop frequently, and now a lot of times they\u2019re doing all this work and taking all this risk, and it\u2019s like $40,000 to $60,000 [profit]. And these are guys that have done a hundred homes,\u201d Dannecker said.<\/p>\n<p><b>Who it\u2019s right for:<\/b><br \/>\nSomeone who knows the local housing market well and is connected with a reliable, hardworking crew. According to <i>Forbes, <\/i>that includes an <a href=\"https:\/\/www.forbes.com\/sites\/forbesrealestatecouncil\/2017\/12\/27\/who-to-roster-on-your-property-flipping-team\/#2f4770407676\">appraiser, a knowledgeable title and settlement company, and skilled contractors.<\/a> Although a skilled real estate agent can assess whether a home is undervalued enough to turn a profit, a contractor can inspect it closely to find, say, a crack in the foundation or a roof problem that will determine whether the investment is worth your while.<\/p>\n<h2>2. Long-term Rentals<\/h2>\n<p>Any residential building with four units or less counts as a long-term rental property\u2014and what NREIA calls \u201cthe backbone of our nation\u2019s housing.\u201d Statistics show that two-thirds of American renters do not live in apartments but in housing that investors generally supply: single-family homes, duplexes, quads, and mobile homes.<\/p>\n<p><b>Pros:<\/b><br \/>\nOwning one rental property makes for easier management (maintaining one yard for landscaping, one set of plumbing, and so on), plus you can collect rents from multiple tenants in one location. You also can<a href=\"https:\/\/www.listenmoneymatters.com\/rental-property-depreciation\/\"> depreciate the building\u2019s value<\/a> on your taxes over time, meaning you can write off as expenses any wear and tear from age, plus the cost of improvements such as appliances and carpeting, says the podcast <i>Listen Money Matters.<\/i><\/p>\n<p><b>Cons: <\/b><b><br \/>\n<\/b>The drawbacks are the headaches that come with <a href=\"https:\/\/www.moneycrashers.com\/buying-duplex-pros-cons\/\">being a landlord<\/a>. It takes time to find the right tenants, a process you have to repeat every time they move, notes the financial education website Money Crashers, which has been featured on MSNBC\u2019s <i>Your Business <\/i>and <i>Good Morning America. <\/i>You\u2019re also responsible for the maintenance, painting, and any repairs. In addition, being a landlord increases your chances of being involved in a lawsuit because of the liability involved with rental property, the National REIA notes in its 2019-2020 report: <a href=\"https:\/\/realestateinvestingtoday.com\/wp-content\/uploads\/2019\/06\/ROI-2019-20.pdf\">Real Estate ROI: Opportunities in Investing<\/a>.<\/p>\n<p><b>Who it\u2019s right for:<\/b><br \/>\nPeople who understand the rental market. If you can rent the property for at least <a href=\"https:\/\/millennialmoney.com\/real-estate-investing-for-beginners\/\">1 percent<\/a> of the cost it took to acquire it\u2014including the expected expenses\u2014then it\u2019s a <a href=\"https:\/\/www.homelight.com\/blog\/real-estate-investing-for-beginners\/\">solid investment<\/a>.<\/p>\n<figure id=\"attachment_12327\" aria-describedby=\"caption-attachment-12327\" style=\"width: 700px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-owner.jpg\" target=\"_blank\"><img decoding=\"async\" width=\"700\" height=\"400\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-owner.jpg\" class=\"attachment-content size-content\" alt=\"A building that is a real estate investment.\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-owner.jpg 700w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-owner-64x37.jpg 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-owner-128x73.jpg 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-owner-192x110.jpg 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-owner-432x247.jpg 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-owner-500x286.jpg 500w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><figcaption id=\"caption-attachment-12327\" class=\"wp-caption-text\">Source: (Photo by \ud83c\udde8\ud83c\udded Claudio Schwarz\/ Unsplash)<\/figcaption><\/figure>\n<h2>3. Owner-occupied Rentals<\/h2>\n<p>This is similar to a long-term rental, except you live on the property, too. If you have a handyman or plumber or electrician that you trust whom you can call upon whenever there\u2019s an issue, an owner-occupied rental such as a duplex or triplex that you share with tenants can be a good way to pay for your mortgage as well as earn additional income. The number of owner-occupied housing units nationwide has started to grow again from a stagnant period in the 2010s, increasing from 77.66 million in 2017 to <a href=\"https:\/\/www.statista.com\/statistics\/187576\/housing-units-occupied-by-owner-in-the-us-since-1975\/\">79.36 million in 2018<\/a>, according to the market and consumer data provider Statista.<\/p>\n<p><b>Pros:<\/b><br \/>\nBecause you live on the property, you can buy these units with a minimal down payment, such as 3.5 percent with an FHA loan or even 5 percent with conventional programs. In addition, you\u2019ll get a <a href=\"https:\/\/www.nerdwallet.com\/mortgages\/mortgage-rates\/investment-property\">lower interest rate<\/a> on your mortgage because the property is also your primary residence, not just a business transaction, which factors into the risk-based pricing lenders use, adds NerdWallet.<\/p>\n<p><b>Cons: <\/b><b><br \/>\n<\/b>Again, it depends on how much you want to be a landlord and how cozy you want to be with your tenants. Even if you don\u2019t have a property manager, you\u2019ll likely have to work with <a href=\"https:\/\/www.homelight.com\/blog\/investing-in-rental-real-estate\/\">specialized contractors<\/a> to ensure any repairs are up to code. It\u2019s also wise to know an accountant who can educate you on the tax code relevant to investment property.<\/p>\n<p><b>Who it\u2019s right for:<\/b><br \/>\nDannecker has seen investors from their 20s and 30s to their senior years in this situation. \u201cIt\u2019s a great starting position or a nice, simple streamlined investor position,\u201d he said. If you have a <a href=\"https:\/\/www.moneycrashers.com\/buying-duplex-pros-cons\/\">relative who needs extra care<\/a> or some mild supervision but still values independence, this sort of living situation also can work well.<\/p>\n<figure id=\"attachment_12322\" aria-describedby=\"caption-attachment-12322\" style=\"width: 700px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-beach-house.jpg\" target=\"_blank\"><img decoding=\"async\" width=\"700\" height=\"400\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-beach-house.jpg\" class=\"attachment-content size-content\" alt=\"A house that is a type of real estate investment.\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-beach-house.jpg 700w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-beach-house-64x37.jpg 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-beach-house-128x73.jpg 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-beach-house-192x110.jpg 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-beach-house-432x247.jpg 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-beach-house-500x286.jpg 500w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><figcaption id=\"caption-attachment-12322\" class=\"wp-caption-text\">Source: (Sebastian Staines\/ Unsplash)<\/figcaption><\/figure>\n<h2>4. Vacation rentals<\/h2>\n<p>Vacation rentals, including booking sites such as Airbnb, HomeAway, or TripAdvisor, are a growing business. The revenue forecast in the vacation rentals market in 2018 alone in the United States was <a href=\"https:\/\/www.statista.com\/forecasts\/516611\/online-revenue-in-selected-countries-in-the-vacation-rentals-market\">$13.05 billion<\/a>. The National Association of Realtors notes that <a href=\"https:\/\/www.nar.realtor\/infographics\/infographic-investment-vacation-home-buyers-2018\">45 percent<\/a> of investors in 2018 purchased a vacation or short-term rental property, compared to 49 percent of homebuyers who purchased the home as a retreat.<\/p>\n<p><b>Pros:<\/b><br \/>\nYou can fund your travel or a chunk of your mortgage by renting out your property, especially if you\u2019re in an area with seasonal residents. In San Diego, for instance, many people want to visit for the summer but will rent out their furnished property in the winter, Dannecker said. He also has worked with clients in Coronado who will rent their home furnished for, say, $30,000 in July while they\u2019re on an adventure that\u2019s not as expensive, such as camping. \u201cThey do it every year because it\u2019s thirty grand for one month.\u201d<\/p>\n<p><b>Cons: <\/b><b><br \/>\n<\/b>There\u2019s a lot of competition in the vacation rental industry, with more than <a href=\"https:\/\/www.hostfully.com\/blog\/state-u-s-vacation-rental-industry-2018\/\">23,000 vacation rental companies<\/a> in the United States. In addition to trusting that whoever rents your property will take care of it well, you\u2019re also entering the hospitality business, which involves considering how many bath towels, pillows, and sheets to provide, among making sure your home is clean and tidy.<\/p>\n<p>One <a href=\"https:\/\/thedistinguishedguest.com\/pages\/short-term-rental-hospitality-quiz-results\">survey<\/a> of about 700 hosts in this industry notes regular maintenance, including getting the carpets cleaned at least twice per year (41 percent), getting the windows washed inside and out twice per year (almost 50 percent), and deep-cleaning the barbecue grill twice a year (42 percent).<\/p>\n<p><b>Who it\u2019s right for:<\/b><br \/>\nSomeone who wants supplemental income to pay for their travels or that vacation property. \u201cThat\u2019s not necessarily an investment. It\u2019s a way for the owners to have a second home and offset their costs,\u201d Dannecker says.<\/p>\n<h2>5. Crowdfunding, or online investment platforms<\/h2>\n<p>Similar to services like Kickstarter, <a href=\"https:\/\/money.usnews.com\/investing\/real-estate-investments\/slideshows\/best-real-estate-crowdfunding-platforms?onepage\">online crowdfunding for real estate<\/a> enables users to pool funds to buy and develop housing. Companies like <a href=\"https:\/\/fundrise.com\/\">Fundrise<\/a>, <a href=\"https:\/\/www.smallchange.com\/\">Small Change<\/a>, and <a href=\"https:\/\/www.arborcrowd.com\/\">ArborCrowd<\/a> give investors a piece of a development deal for as little investment as $500. These also can spring up through local building projects, such as a developer seeking crowdfunding for, say, six townhomes or a thirty-unit apartment building.<\/p>\n<p>\u201cMany syndications, if they don&#8217;t already have groups of investors that are offering money, can crowdsource \u2026 It\u2019s another way to attract money to a project that they believe in,\u201d Dannecker said. \u201cThey can be really good investments.\u201d<\/p>\n<p><b>Pros:<\/b><br \/>\nYou can get a high return on an investment without the large down payment that buying other investment property might require. If you have $100,000 and get back 10% a year, you\u2019re earning $20,000 two years later, Dannecker said. \u201cI did one last year in Arizona, and I made a 60% return in 13 months.\u201d<\/p>\n<p>Crowdfunding websites for real estate have properties in different locations and <a href=\"https:\/\/www.investopedia.com\/articles\/investing\/072514\/real-estate-and-crowdfunding-new-path-investors.asp\">diverse portfolios<\/a>, so you can choose the projects in which to place your money, <i>Investopedia <\/i>says. You also don\u2019t have to deal with managing property.<\/p>\n<p><b>Cons: <\/b><b><br \/>\n<\/b>Real estate developers who use crowdfunding carry a <a href=\"https:\/\/www.investopedia.com\/articles\/investing\/072514\/real-estate-and-crowdfunding-new-path-investors.asp\">higher risk of default<\/a> than peer-to-peer and direct real estate investment funding, according to <i>Investopedia. <\/i>So do your research and vet the company to make sure it has a good track record, just like you would with any stock in the stock market. What\u2019s its performance? Who are the leaders of this firm? You want to work with a company that demonstrates staying power.<\/p>\n<p><b>Who it\u2019s right for:<\/b><br \/>\nSomeone who has the extra cash to invest but not the time or desire to be as hands-on as a landlord or a property flipper.<\/p>\n<figure id=\"attachment_12324\" aria-describedby=\"caption-attachment-12324\" style=\"width: 700px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-reit.jpg\" target=\"_blank\"><img decoding=\"async\" width=\"700\" height=\"400\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-reit.jpg\" class=\"attachment-content size-content\" alt=\"\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-reit.jpg 700w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-reit-64x37.jpg 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-reit-128x73.jpg 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-reit-192x110.jpg 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-reit-432x247.jpg 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/09\/types-of-real-estate-investments-reit-500x286.jpg 500w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><figcaption id=\"caption-attachment-12324\" class=\"wp-caption-text\">Source: (Echo Grid\/ Unsplash)<\/figcaption><\/figure>\n<h2>6. Real Estate Investment Trusts (REITs)<\/h2>\n<p><a href=\"https:\/\/www.investopedia.com\/articles\/investing\/040315\/reits-versus-real-estate-mutual-funds.asp\">A real estate investment fund<\/a> or REIT (pronounced \u201creet\u201d) invests directly in real estate, typically in commercial buildings, but is bought and sold like stocks. An investor may already have REITs in a retirement fund or a stock account. These funds are rated like other stocks, and you can research them readily through TD Ameritrade, Charles Schwab, and other brokers.<\/p>\n<p><b>Pros: <\/b><b><br \/>\n<\/b>REITs give investors an opportunity to defer <a href=\"https:\/\/www.homelight.com\/blog\/smart-real-estate-investments\/\">capital gains taxes<\/a> on other investment properties by investing in new properties. For instance, the 2017 Tax Cuts and Jobs Act included a new federal incentive called <a href=\"https:\/\/www.taxpolicycenter.org\/briefing-book\/what-are-opportunity-zones-and-how-do-they-work\">Opportunity Zones<\/a>, where any corporation or individual with capital gains can reap tax benefits by investing in distressed communities. If you have capital gains income from another investment property, \u201cyou can buy in federally distinguished areas where they want to inject money into those areas \u2026 and you can basically wipe off a lot of the taxes you have to pay,\u201d Dannecker said.<\/p>\n<p><b>Cons: <\/b><b><br \/>\n<\/b>Some REITs lack liquidity, or how easily assets can be converted to cash, and may have <a href=\"https:\/\/www.levinlaw.com\/news\/real-estate-investment-trusts-pros-cons-and-dangers\">upfront fees<\/a> of as much as 15 percent, according to the Pensacola, Florida, law firm Levin Papantonio, which handles securities litigation. It\u2019s important to talk with a tax attorney or accountant before such an investment to determine a particular REIT\u2019s impact on your tax liability.<\/p>\n<p><b>Who it\u2019s right for: <\/b><b><br \/>\n<\/b>Someone comfortable dealing with a stockbroker or financial planner, who generally recommend certain REITs and manage your portfolio.<\/p>\n<h3>How to get started<\/h3>\n<p>Investing in real estate isn\u2019t a \u201cset it and forget it\u201d proposition. Educating yourself on not only the types of real estate investments but legalities, insurance, and other particulars is important when deciding whether you want to take the plunge.<\/p>\n<p>The National REIA has local chapters nationwide that provide opportunities for aspiring investors to network, as well as an online learning platform, <a href=\"https:\/\/nationalreiau.com\/\">National REIAU<\/a>. The platform offers a range of classes, some free, and helps students build toward becoming a Professional Housing Provider, a designation that indicates a certain level of education.<\/p>\n<p>Bear in mind these other tips:<\/p>\n<p><b>Treat investing as a business: <\/b><b><br \/>\n<\/b>The National REIA says that to become successful as a real estate investor takes real work\u2014and at least three to five years. Don\u2019t treat it like a hobby and devote scattered time to it.<\/p>\n<p><b>Stay focused: <\/b><b><br \/>\n<\/b>Jeffrey Watson, the National REIA\u2019s general legal counsel, said investors should pick no more than two or three areas in which to practice and do those repeatedly. Those who suffer from \u201cshiny object syndrome\u201d and pursue one different thing after another rarely reap the rewards.<\/p>\n<p><b>Ask yourself solid questions: <\/b><br \/>\nHow much time will you put into this investment? How much capital are you willing to risk? What rate of return do you want? That\u2019s not just a percentage. Do you want your investments to give you regular monthly income?<\/p>\n<p>You also can speak to an <a href=\"https:\/\/www.homelight.com\/blog\/investor-friendly-realtors\/\">investor-friendly real estate agent<\/a> who can calculate different scenarios for you with down payments on various properties, interest rates, mortgage rates, taxes, maintenance, and other variables, so you can understand what your total costs and obligation would be. \u201cMany novice investors come to us, and if I say, \u2018It\u2019s only $800,000. It\u2019s a great deal,\u2019 they don\u2019t know what that means. The big question that they\u2019re asking is: \u2018What does that mean for my monthly payment? How much money do I need to put down?\u2019\u201d Dannecker said. \u201cA good agent is going to be able to paint that picture.\u201d<\/p>\n<p><em>Header Image Source: (ZACHARY STAINES\/ Unsplash)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Consider this a primer on most common types of real estate investments so you can learn more about this popular method of potential income.<\/p>\n","protected":false},"author":76,"featured_media":12321,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[329,319],"tags":[],"class_list":["post-12320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-flipping","category-selling-advice"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ 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