Real estate investors with big dreams sometimes have to start out with small investments, according to real estate investor Matthew Iovane.
From buying stock in a real estate investment trust (REIT) to investing in rental properties, you can start out with low-risk investments that help you accumulate money for larger deals, suggests Matthew Iovane, Founder and CEO of Outpost LTD, a UK private real estate portfolio.
In this article, Matthew Iovane provides four tips for beginners looking to break into real estate investing. Investors should always research any investment opportunity thoroughly before making a final decision.
Real Estate Investment Trusts
REITs are like the mutual funds of the real estate world. They allow you to invest in the real estate industry without paying out large sums for retail spaces, office buildings, hotels, or single-family homes. REITs that pay high dividends can make a great addition to your retirement income, Matthew Iovane says.
House Hacking Per Matthew Iovane
Buying a property and renting part of it out is sometimes referred to as house hacking. Essentially, you live in your investment property but rent out rooms or, if you can afford a multi-unit building, apartments to tenants. You can typically raise enough money to cover the mortgage and expenses on the property with a bit leftover, Matthew Iovane explains.
Online Investment Platforms
Investment platforms such as Fundrise and RealtyMogul provide unique opportunities for new investors. Read the fine print though, some platforms only accept qualified investors who earn $200,000 a year or more or have a $1 million net worth. With those requirements, you can typically find more direct investment opportunities, says Matthew Iovane.
Flipping Homes
By finding the right real estate agent, you can identify underpriced homes that you can renovate and resell for a large profit. It takes a long time to learn how to do it right. So, if you can partner with a veteran, you can reduce both the risk and the workload, Matthew Iovane notes.
Flipping homes is hands-on and a lot more work than some of the other options. However, it’s a great way to grow your investment fund to qualify for other opportunities.
About Matthew Iovane
As the founder and CEO of Outpost LTD, Matthew Iovane has learned these tips from personal experience. Besides running a large UK private real estate portfolio, he is an angel investor in the beverage industry. He has climbed Mount Kilimanjaro and run the London Marathon for fun and to raise money for worthy causes.