Did you know that over 50% of residents in Columbia rent their homes? This means that investing in rental properties is the best bang for your buck.
However, you currently might not have the funds to buy a property outright, so how do you start investing? Keep reading to find the best 4 small investment ideas.
You may have heard of crowdfunding platforms such as GoFundMe and Kickstarter. These crowdfunding platforms are usually focused on personal development or start-up companies.
But did you know that you can crowdfund a real estate investment as well? Platforms like Fundrise and EquityMultiple are excellent starters, but there are many others that you can look into to find your fit.
You will receive a small portion of the profits or income depending on the amount of your initial investment. Making this one of the best small investments you can make!
Real estate investment trusts, or REITs, are similar to crowdfunding. However, REITs are stock and are sold on the major exchange.
REITs are often used for larger investments such as malls, sports centers, office buildings, or other large commercial real estate property. Compared to crowdfunding, you won't need to hire a real estate agent and a title transfer if you wish to sell the stock since they are sold on the stock market.
You might think that wholesaling in real estate is similar to buying wholesale in retail; a large amount of product for a better price. However, that is not the case in real estate.
With real estate, wholesaling means that you buy a house with the intent to sell to a different buyer. You buy houses for cheap and try to match them with potential buyers that will enjoy living there.
Sometimes, a wholesaler might put a clause in the sales contract that will keep them off the hook if a final buyer cannot be found. This type of investment does require a lot of hustle and networking, so be prepared to make this a full-time job.
4. House Flipping
House flipping is similar to wholesaling; you buy with the intent to sell it again. However, the difference between the two is that a house flipper buys fixer-uppers and, as the name implies, fixes up the house.
For house flipping, you may need several small investments in the long run. You'll first have to pay the downpayment, and on top of that, you'll need to invest in tools, materials, and labor.
House flipping is not for the faint of heart; you will need free time to design and finish your plans. And to optimize your investment, it is best if you do the bulk of the renovations yourself.
What Are Your Small Investment Ideas?
You can scale these small investment ideas according to your budget. Start small and steady, and do your research, and you'll see that your money will start to grow.
Are you looking for some help in analyzing your investments? Contact us today for a free assessment!