The real estate sector over the years has been booming and investors turn towards real estate investment. Everyone want a fair share of this booming sector which has lead to a rise in real estate investments, most investors in the real estate sector seek high profitable type of real estate to invest in, however each type of real estate investment poses it’s own level of risk, be it industrial, residential or commercial real estate. But if you would like to mitigate the risk associated with commercial real estate investments you can read up on our previous post How To Minimize Risk in Commercial Real Estate Investment with the link https://property4naija.com/how-to-minimize-risk-in-commercial-real-estate-investment/.

Okay, before i talk about why you should invest in real estate i would like to give you a few tips on how you can invest in real estate and if you do this the right way you will be on your way to amassing a fortune for yourself.


How Can One Invest in Real Estate?



Before any attempts to investing in real estate you should determine how much money and time you are willing to put into it as real estate investment will not only cost you money but also a ampule amount of time as the amount of work put into real estate investment varies on the type of real estate you decide to invest in, let say for instance an investor who wants to flip property for profit should be will to put all the amount of work required in renovating the property before selling for profit.

Rental Properties; This is the most common type of real estate investment, the investor acquires rental properties in the form commercial or residential real estate and offers the property to tenants for rent. However it is pertinent that the investor is familiar with the environment to get a good price on the property and in turn offer the property to tenants at a price fair for the tenant and competitive in the market.

Real estate investment trusts (REITs); This type of real estate investment is best suited for those who don’t want any commitment with property management or just don’t have much time to commit to property management but are interest in the proceeds of real estate investment. Here investors gives out money to a corporation which then uses the money to acquire a property, manage the property and share dividends as the property appreciates amongst investors. This type of real estate investment is highly rewarding and an
individual investor can decide to sell their share at will.

Crowd Funding Platforms; Is slightly similar to real estate investment trusts and is fast gaining popularity amongst investor in the real estate sector but in this case funds gathered amongst individual contributors are not given to any trust or corporation but are directly used for real estate investment through an interested real estate developer

Flipping Rental Properties; Flipping of properties can be very rewarding but comes with some amount of risk, therefore best for those who have a hank of real estate business and are familiar with construction and building designs worth and pricing as this type of investment requires buying of undervalued properties, renovating then selling it at a high price, this is were the risk comes in as selling of the property at a higher price is not guaranteed.


Why You Should Invest In Real Estate


Real estate investment can be both satisfying and lucrative. Unlike investing in cryptocurrency, prospective real estate owners can leverage on installment payment plans by paying a portion of the total payment up front and making up for the balance and interest over a predetermined period of time. Another reason you invest in real estate is it’s capacity to diversify the investors portfolio with a low level of risk, hence the reward is immeasurable with the risk associated with real estate investment. Also it is an excellent choice when looking for means to generate passive income as certain real estate investment such as REITs do not require active participation of the investor

Generally, real estate investors make money through rental income as result of property appreciation capabilities. Real estate values tend to increase over time and with a good investment strategy, you will be making huge profits when it’s time to sell. Rents are always on the rise with development and property appreciation which can lead to higher cash flow for investors so why the wait? jump unto the band wagon and build wealth for generations to come.