In 2019, several surveys showed that real estate investing was one of the best ways to create wealth and passive income. Additionally, Colorado has been touted as one of the best areas to do real estate investing for 5 years.
There is a saying “If you own it, you can change it.” It talks about mindset. Mindset and attitude is the ultimate key in winning at real estate investing, but it also refers to how you can invest.
Having a clear idea of what you want, need, and are willing to do will help you decide what kind of investing you should seek. There are some kinds of investments that require skills and know-how, or a team of investment, property management, and construction professionals that can support you through the process.
Old School Investing
There are a number of old school real estate investing styles that date back to almost the beginning of time
Buy a rental property
Simply put, buying a property can mean buying a house, an apartment building, or a commercial building and renting it out to an individual or business. It is costly, and often you need to hire outside help.
Buy a multi-family live in part and rent the rest.
Another small scale version is buying a multi-family house and living in part of the house, while renting the other units.
Spec homes are a tried and true way to invest, although time delays in the building process can make this costly, it can be a lucrative business.
“Flipping houses“ or “fix-and-flip” has become popular with many TV shows. It is the process of buying a home, making repairs, then quickly selling for a profit. Time is the factor that can sink this.
Invest in a REIT
Real estate investment trusts, or REITs are real estate stocks, they can have a ready-made portfolio that resembles a mutual fund, in that there is more than one property in the portfolio
Some New School Investment strategies
Airbnb and Vrbo
Airbnb and Vrbo are two of the most well known of the internet rentals. It’s a rental that consists of a few days, or a few weeks that is viewed internationally via the web. Rent your second home or a room in your home.
Real estate crowdfunding opportunity
Companies like RealtyMogul and Fundrise are the new kids on the block in investing. This element of investing and Gofundme attitude brings up new ideas and concepts. This is the Wild West of opportunity and high risk.
With any kind of investing it’s best to know what your risks and tolerance are. Are you happy swinging a hammer, or were you the kid in shop class who started a fire? Then flipping may or may not be your best choice.
There are many opportunities in Colorado Real Estate Investing, and it’s just a matter of figuring out the best fit for you.