Best way to invest in real estate?

Question

What is the best way to invest in real estate?   I wish I could do flipping but I don't have enough funds to support that.    I'm also looking in becoming a landlord but I'm worried I won't make much of a profit for the amount of work put in.   Are there any other good ways to invest in real estate?   How, and why?

Peter Mckernan · Answer

If I were you I would make sure that you know what the end result is that you want. Make sure you set goals to get there and also meet the right people to help you get there.

Investing partners are the best way to go if you do not have that much money at the time of your first investment deal. You should look into finding some interested investors on this website and pitch the thoughts to a couple close friends that would be interested to invest. If you educate yourself on the topics and can express to people that you know how to handle a partnership, then there will be a lot of people willing to invest with you. @James Wise also has some very good suggestions.

I wish you luck,

Peter

Jonna Weber · Answer

Hi  @Jennifer Fernéz!  I would encourage you to begin with the end in mind - why you might invest in the first place, and work from there.  As @Joe Fairless mentioned, reading specific books and of course, listening to podcasts and reading on BP will help you filter out what you gravitate to.  Be patient and read, learn, look at houses....it's all helpful!

Joe Fairless · Answer

@Jennifer Fernéz there are so many different paths you can take. I recommend reading some books (a good list is here) and identifying the areas that you might enjoy best and can meet your goals. Then, find people in those areas who are successfully doing it and ask, based on your personal situation, how you should get started.

Cole Davis · Answer

If you don't have a lot of capital to do it on your own, I would team up with an experienced syndicator - he / she has the track record and helps raises the money and you hustle to find the deals. You essentially are leveraging their experience to grow and learn the business so you can someday run your own syndications. If you have a successful track record with the first partnership, fundraising shouldn't bee overly difficult.

Timothy Trewin · Answer

@Jennifer Fernéz

To add my $.02 to what everyone else has said, I would recommend that you research all the areas of investing and see what is right for you. Once you do that then focus on studying up as much as possible in that area. There are so many great resources on here and people who are successful in every area of REI that you can seek out once you find out what you want to do. The key is what your long term goal is. If it is steady income then buy and hold might be the best way long term. If it is a lot of money quickly, then maybe it is flipping. Wholesaling is also a route to go if you want to make money with little invested and less risk, it really is up to you though. Best of luck on whatever it is that you choose to do.

Carey Grant · Answer

Welcome to BP, if you have to, be patient..form a plan while saving your money..once you learn you can put that plan to work!

Sheryl Griffin · Answer

Hi Jennifer.  Welcome to BP!!  With little cash, you might try starting out with mobile homes.  If you get to know this market, you'll start finding deals well within your price range, and turn around and sell for a profit.  It does take some effort in getting to know that niche, but once you do, it's easy and profitable.  I've found mobile homes for as little as $5,000.00 and turned around and sold for $12,000.00.  Just an example, but gives you an idea.  Check out some BP forums on Mobile Homes and blogs from @John Fedro.  He has a good podcast (#75, June 19) to listen to here on BP where he'll give you some good insight.

Happy investing!

Walter Pape · Answer

Jennifer,

Welcome to BP!!! I am also starting out in RE investing and have low cash reserves. My advice would be to continue to read the different forms and podcasts on the website. As you go through your research a niche will pop out to you. Continue to explore what the niche and go into action!! A couple of resources that really help me are:

http://beta.biggerpockets.com/real-estate-investin...

Personally, my journey has lead me to Mobile Homes. Its not what I thought I wanted to do when I started but the more I learn the more I get excited about it!!! If you have any questions please reach out and I would be happy to help in anyway I can.

Best,

Walter

Emily Du Plessis · Answer

Hi Jennifer,

If you're just starting out I agree with James, getting into a partnership may be a good option.  My husband and I invest in buy and hold properties so we are landlords and I have to say the cash flow that we earn  far surpasses the amount of work we have put in.  I think if you are diligent about getting good deals and good properties and properly screening your tenants, it can be a great way to invest! But you must take the time up front to do it right to avoid the headaches later!

Emily

James Wise · Answer

Try investing a smaller amount into some form of syndication, partnership or crowdfunding until you have enough to go at it alone.

Best way to invest in real estate?

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