4 Ways to Get Started In Real Estate Investing In 2021

 

If you've been thinking about investing in real estate, you might be feeling a bit intimidated by the idea of it. Investing in the stock market or in cryptocurrency is fairly straightforward, but investing in real estate feels much bigger and like more of a commitment. However, real estate can get you larger returns faster and it doesn't have to be overly complicated.

All you need is a strong foundational knowledge of real estate investing and a team of real estate investment professionals on your side. Keep reading to learn about some ways to get started in real estate investment in 2021.

1. Rent Out a Room

Oftentimes, people think that they need to have a large sum of money to jump into real estate investing, but that's not the case. In fact, you can get started if you have a spare bedroom or mother-in-law suite at your home. 

Although renting out a room isn't a great long-term investment option, it's easy and can help you save up the money to make a larger real estate investment down the line.

You can either have a long-term renter stay in the room and pay you monthly or make the room into an Airbnb. Even if the room isn't always booked, you can easily make a few thousand dollars after just one year of renting a room out. Then, you can use that money to start making bigger investments in real estate.

2. Flipping Investment Properties

Flipping properties is a great way to build wealth quickly, especially if you're someone who's handy and can complete repairs and renovations without hiring others. However, flipping properties can also be risky, especially for inexperienced investors. Not only will you need to pay all in cash, but if you overpay for a property that requires a lot more repairs than you thought, you could lose money.

It's best to hold off on flipping properties until you've learned a lot about real estate and have the financial stability to handle a loss if necessary. 

3. Purchase a Short-Term/Vacation Rental Property

One of the best options for real estate investors is to purchase a property, whether it's a condo, townhouse, or single-family home, and rent it out for vacationers. For this type of investing, you can take a mortgage out and have rental rates that cover your mortgage, insurance, and property tax costs along with some extra money for repairs and property management. 

Investing in a vacation home can be more fruitful than other options because if you're always booked, you can make a ton of money. However, as 2020 has shown us, vacation rentals can be hit with long periods of limited renters, which can cost you. Fortunately, with this type of investment, you're still gaining money in the long term from the property appreciating in value. So, even if there are periods where the property is empty, you'll be secure in the long run.

4. Purchase a Long-Term Rental Property

The most fruitful form of real estate investing is purchasing a single-family or multi-family property to rent out to long-term renters. You can start investing in rental properties with just a few thousand dollars and have the cost of rent cover your expenses as you build equity and the property appreciates over time. 

There are always going to be people looking to rent a nice home, so you shouldn't have trouble filling vacancies, especially if you work with a local property management company. This option also requires less work from the investor and allows a person to invest in properties out-of-state if they want. 

Start Investing In 2021

Whether you're looking to dip your toes into real estate investing by renting out a room, or you're ready to invest in a residential property, 2021 is the year to get started. The real estate market is stronger than ever, and it's time for you to cash in on all of the excitement.

Work with the best real estate investment team, Professional Real Estate Management & Investment Services Inc., and start growing your wealth for the future. Contact us today to learn more. 

The Florida Forecast: Real Estate Predictions for 2021

2020 has been an unprecedented year full of ups and downs, especially when it comes to the real estate market. Just a few months ago, investors, sellers, and buyers were all unsure what this pandemic would do to the real estate market, with many people nervous about an inevitable crash. 

However, just the opposite has happened. As the world has been in quarantine, people are placing more value on where they live than ever before which has led to a boom in the real estate market. Demand is higher than ever and prices continue to rise as the year comes to an end.

But what can we expect for 2021? Will prices continue to rise, or will they even out? Keep reading for our Florida forecast and predictions for real estate in 2021.

The Population Will Grow

The population in Florida grows, on average, 1.6 percent per year and that growth is expected to continue. Florida is one of the most popular destinations for people immigrating from around the world, as well as for U.S. citizens searching for warmer weather from up north. Pair that with more millennials wanting to live in the major Florida cities like Tampa and Miami, we can expect the population to at least reach average growth levels, if not exceed them in 2021. 

What does that mean for real estate? Well, it means more demand for buying properties, but also more demand for renting properties. A lot of people moving here from out of the state or out of the country are looking to rent before settling down and buying a property. This is great news for investors; there should be no shortage of renters for your investment properties come 2021.

Prices Will Continue to Rise

After a short dip early in the pandemic, real estate prices have surged well above what they were prior to the start of the pandemic. But can prices continue to increase in 2021? The answer is yes, and they are expected to. 

Demand for real estate is sky-high and supply is nowhere close to catching up, which means prices will continue to rise into the new year. Regardless of the pandemic, we are certainly in a seller's market and it's not expected to shift from that next year. So for potential investors waiting for a real estate crash, don't hold your breath. The time to invest is always right now!

Higher Demand for Short-Term Rental Properties

With a vaccine on the horizon, traveling will begin to ramp up again in 2021. People will be jumping at the opportunity to travel to the best beach spots in Florida for a paradise getaway, and that means demand for short-term rentals and AirBnBs will skyrocket.

For investors who prefer renting out to vacationers, 2020 may have been a bit of a struggle. But don't worry; brighter days are ahead in 2021. 

There Will Be Great Opportunities for Investors

While prices are increasing and investors may feel hesitant about jumping into a seller's market, there are still plenty of opportunities for a great deal. Investors who are willing to put in some sweat equity can capitalize on the foreclosures around the state. With prices skyrocketing for turn-key homes, the opportunity is there for investors to buy a cheap, run-down property and renovate to make a huge profit.

Investors with cash-on-hand should look to auctions and bank-owned homes to find some great deals. Additionally, you can work with an investment company that has exclusive connections to the best deals in town. Even in a seller's market, there are always fantastic deals out there to take advantage of.

The Time to Invest Is Now

If you're on the fence about investing in real estate, our 2021 forecast clearly shows that the time to invest is now. With higher prices and more demand on the horizon, waiting around to invest will only cost you in the end. Get started on your real estate investment journey today with Professional Real Estate Management. Contact us today to learn more about our investment and property management services.