Can rental properties be more than just additional income?

Real estate investments sound simple in theory: buy a property, flip it or rent it out, then invest your profits further until you are financially comfortable. In reality, gaining enough profit from your investments takes time and careful consideration, and those expecting a quick turnaround are left disappointed after conducting basic research into the matter. For those, returns from owning rental homes or from selling properties may not seem worth it, especially as you are expected to invest not just your money but your time and effort as a homeowner. However, it is essential to keep perspective - real estate is a great industry to invest in precisely because of its stability. Although your assets may not skyrocket in their value overnight, over time, you can build an extensive, fruitful portfolio that can help you reach the financial independence you are seeking.

How to start investing in real estate?

First and foremost, you need to put in the time and effort to study the area and the local real estate market. What are the amenities and opportunities around the property? How good is the local school district? Are there any offices and big-time employers nearby? How about parks or grocery stores? It’s important to remember that a place you want to buy and a place you should buy are not always the same. While many of us would love to own a cozy cottage in the woods or a beach-front house, realistically, more people would be interested in a small, tidy apartment close to the city center. It wouldn’t be a bad idea to spend a few months carefully considering neighborhoods, towns, and even countries to gain an understanding of who the locals are and what kind of tenants would be attracted to live in this area. Market research is a slow process, but it is better to be sure of your purchase than regret it later.

How to actually get rich on real estate?

Successful landlords are often thought to be older people who have accumulated significant capital over their lifetime to buy up real estate to fund their retirement, but if you want to start on this path, do not wait until you have enough money to afford multiple residential buildings from which to profit. One of the major benefits of real estate is the opportunity to pay in parts, whether you choose to take out a mortgage or a lease or agree on a payment plan with the seller. Profiting from real estate is a slow start, but even though the cash flow you will get from a single property might not be impressive, as long as you choose smartly, those property expenses will recover themselves in no time. Some investors go as far as to recommend buying a rental property per year to bulk up your portfolio and make your investment profits increase exponentially over time.

Don’t think of the initial purchase in terms of “how much do I need to earn to buy a 300k home,” but instead consider it your investment in a business that you are starting. Any business requires an initial monetary investment and orderly management. As your income from the rentals starts to accumulate, you can invest part of that money back into your properties to increase their value. Dated furniture, dirt and grime from daily use can significantly bring down the price of your property, but with some minimal upkeep, the value of the real estate can easily be doubled or even tripled in just a few years.

How can you make real estate investment easier?

But what to do if you don’t have all this time and energy to conduct research on the local real estate market and further establish your investment business? The easiest solution is to find a trusted real estate investment agency. A good agency will compile a comprehensive list of available properties within your budget and requirements and will provide guidance and even insider tips on each location. You should be confident that the agency you are doing business with is not affiliated with or sponsored by anyone. At the end of the day, you as an individual should be the client and not some construction firm that has cut a deal with local real estate companies.

As tricky as it sounds to choose the right company to do business with, reading online reviews and hoping for the best are not the only options out there. Some agencies get creative to assure customers of their reliability. For instance, a real estate investment agency in Ukraine, DGY Investments, has introduced a system where each client signs up for a small fee to get full access to the agency’s portfolio and consultation services. If nothing fits their needs, the money is simply returned after 90 days. If a property does catch the client’s eye, the client receives assistance with finding tenants or buyers, finishing and renovating the property and finalizing all the legal paperwork. This approach attracts many new customers who can then rest easy about their investment.

Regardless of the path you choose, property investment is a lucrative industry experiencing a major boom due to the pandemic. With some initial preparation and research, anyone can get rich off of real estate, so do not hesitate to try it out for yourself.