Many people wonder how to invest in real estate, but do not take the steps to make that dream a reality. Without a way to earn extra money, some people think that they are locked out of the real estate game. To be truthful, with advancements in technology and access, it is not as hard as many people make it out to be.
As with all things, you have to have a plan in place. Each style of real estate investing is not something that can be done on a whim. Are you going to buy and hold? Purchase a fixer-upper? Purchase a property to live in? These questions are only the tip of the iceberg. Right here, however, I am going to go over a super beginner way of getting into real estate. These methods are the definition of dipping your toe in!
This article will go over some serious beginner steps in getting into the real estate game. Unfortunately, we will not go over becoming a landlord. These steps are for people who want a hands-off approach to owning real estate.
Buy REITs
This acronym stands for real estate investment trusts. REITs allow you to invest in real estate without owning a physical building. They are often compared to mutual funds in that they are companies that own commercial real estate. These can include office buildings, retail spaces, apartments, and hotels. On average, REITs tend to pay higher dividends and are really attractive to retirees. This is also a perfect avenue for investors who don’t want or need regular income. The dividends can be automatically reinvested to grow the investment further.
REITs can be a great investment, but they can also be complex. Some trade on an exchange like a stock. Others can not be publicly traded. The type of REIT that you purchase can be a big factor in the amount of risk that you take on. Non-traded REITs are not easily sold and may be hard to value. However, newer investors should generally stick to the publicly traded REITs that you can purchase through brokerage firms like this…
In addition to investing in REITs you can also invest in all kinds of index funds and individual stocks. With our partner, you can not only take care of your investing needs, but your banking needs as well!
Use An Online Investing Platform
From the comfort of your home, you can buy shares of real estate properties through online apps! You can build wealth share by share with Landa.
Landa
This is a mobile app that allows you to purchase shares of rental units as a way to build your portfolio. Real estate has generally had a higher return rate than the stock market, so this is a way to build wealth AND involve yourself in ownership! On your phone, scroll through properties and take a look at their stats. You can look up the location, the square feet, and other aesthetic info. You can also take a look at info like the purchase price, if a tenant is currently occupying the residence and how much they pay in rent per month. Of course, you can take a look at historical data on the lease agreement when the lease expires and other pertinent information.
These are real properties and YOU get to buy shares of them and earn dividends each month! You also earn more as the property value increases. Right now, there are a plethora of properties available in Georgia. In addition, New York has just opened up and several properties are available all around the city as well, and coming soon, is Florida. Their mission is to add more and more states and cities as time goes on.
When you visit the site, you will be prompted to download the app through a QR code and start your real estate investing journey right away!
This is not the only way to invest in real estate, but this way is extremely beginner friendly and not a lot of money is required. It is, however, a way to get started in the game and build.
Become a Virtual Millionaire!
These next two platforms are strictly for enjoyment purposes only. Using the power of the blockchain, web 3.0, and cryptocurrency, you can invest in virtual real estate! Own virtual property that is based on real-life locations, earn crypto rewards and even NFT’s, and gain notoriety in the virtual world. These are mobile games only, but can return real rewards in the process!
If you are familiar with mobile games like Pokemon Go, imagine if whatever Pokemon you caught, you actually owned it as a digital asset? The world is shifting to owning digital assets and using those as a way to acquire true wealth! On top of that, we also have a method of mining crypto on your wrist. For this example, however, allow me to introduce Atlas Earth!
Atlas Earth
With Atlas Earth, purchase virtual land that pays you rent. This game allows players to buy and sell virtual real estate digitally recreated on top of the real world. Players can own parcels of land in their local neighborhoods, as well as 3D-modeled landmarks and the land that sits beneath these landmarks.
Players can build their virtual real estate empires, while exploring their area with their mobile device, to earn and cash out rent in real USD.
As stated earlier, this is for entertainment purposes only, so this will not make you a millionaire, but it is satisfying to walk around with your phone and purchase plots of land that generate you rent every second of every day.
Upland
You may have seen the llama in the advertisements and wondered what it was all about. This is a property trading game that allows people to buy up plots of land in the real world. A major difference between Atlas Earth and Upland is the fact that Upland can be played on a phone, or on a desktop computer. In this game, your avatar, also known as a Block Explorer, moves around designated areas at random. There is a little strategy involved because you do have some influence over where your Block Explorer moves to. As of this writing, there are only select cities that you have the ability to invest in also. Some of these include Las Vegas Nevada, Sacramento California, and Detriot Michigan. The team is constantly working to add more cities and states.
Players use the in-game currency, UPX to mint (purchase) a variety of NFTs. These NFTs are tradable on the open marketplace for both U.S. dollars and the virtual currency UPX. This is the only currency used to mint most NFTs in Upland. It is not tradable outside of the game, however, this adds utility to the token. It also helps to stay out of regulatory trouble since it is considered a digital good rather than a currency. USD is also used to make purchases in the game after reaching a certain level.
A Familiar Looking Property Trading Game
As you get into the game, you may notice a familiar look to the title deeds as well as the plots of land. This game takes some design cues from Monopoly…the original property trading game! Get a blast from the past and a dose of the future as you buy up property to earn UPX, collect rent, and have the ability to sell those properties! Many of the transactions have the ability to transfer to USD the further you progress in the game.
The world is changing, and people are building wealth by investing in real estate. It does not matter if you want to invest in the real world, or virtually, you have the power to do so right in the palm of your hand.
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