Real estate is an area where many investors make their money. However, in the past, it has required a sizable investment to get started. That is no longer the case. We now have sites that we can visit that help us use the concept of crowdsourcing to buy into a piece of a real estate transaction. Now that we can start small, it makes sense to look at this as a way to save, invest, and earn a passive income from those savings.
Traditional Real Estate Investments
There are a few ways to make money from real estate. We can buy, hold, and then sell at a higher price as the holding becomes more valuable. On the other hand, we can buy, improve the property, and then “flip” it by making value-enhancing changes to the property. Finally, we can rent the property either on an annual or weekly basis. We might even combine these as part of maximizing the return on our investment.
Do Your Homework
While this type of investing can bring a substantial return, there are many ways to make mistakes. You can buy a money pit, in a bad neighborhood, or fail to attract renters. The good news is that most of this will fall on the site when you are micro-investing. However, there will still be questions you want to be answered that require you to do some research. Take your time and do the hard work upfront. That will help you improve your chances of an impressive passive income down the road.
Get Started Today
We mentioned a couple of sites during this episode. When you want to look into micro-investing in real estate, the links below can help you start your research. These articles list several sites that can help you start with this investing style, as well as providing a bit of a review of each site. This form of investment is one that will require you to perform due diligence. If you skip that work, then you might find yourself owning a small piece of nothing.