The Lazy Way to Invest in Real Estate

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Elena

29/01/2023
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It is safe to say that most people are looking for a safe, simple way to invest their money and experience the most growth.

One of the most consistent and reliable means through which one can invest is real estate.But there is a lot that goes into properly investing in the field of real estate. Is there a lazy way to do it?

For those seeking a hassle-free approach to investing in real estate, check out the properties for sale at eXp’s site wherein their user-friendly platform and comprehensive listings make it the lazy way to explore real estate opportunities. This is as close to the lazy way to invest in real estate as it gets.

Not That Lazy

What is meant when it comes to “the lazy way to invest in real estate” is not necessarily low-effort but rather not having thousands upon thousands of dollars to invest. The saying is that you need to have money to make money, especially in the real estate industry.

If you don’t have money, how can you possibly hope to get involved? The good news is that the money doesn’t have to come from you. There are a few simple ways to invest without having to invest a ton of your own money.

House Hacking

One of the most proven ways of investing in the “lazy way” is known as house hacking. House hacking is where you use your own home to generate rental income. If you buy a multi-unit property, something like a triplex or four-plex, you can live in one unit and rent out the rest.

Living in a high-cost city, you can rent out those extra bedrooms or even a basement apartment. If you don’t own a home, there is potential owner-occupant financing that is available through things like VA loans, FHA loans, USDA loans, and even conventional loans.

Live-In Flip House

If you don’t want to rent your own house, you can start to make improvements to it before ultimately selling it for a profit. This requires living in the house for at least 2 years so that you can flip it and save on taxes up to $250,000 for a single person or $500,000 for a couple.

This option also means that you have a ton of time to improve the house, making it as appealing as possible to the buyer or renter. Income property is one of the most profitable means of investing in real estate because marking up that investment as much as possible becomes the way to go.

Live-In-Then-Rent

This is similar to house hacking, but this allows you to buy a home, move in, and rent it out to others at a later time. You benefit from a small down payment on an owner-occupant house, but you won’t actually have to live with the tenants.

The key is to find a modest house that will make the most financial sense as a rental. You can even make it a home for as long as you stay there. When you are done, you can even repeat the process, getting a new property and starting over again.

Seller Financing

One of the last ways in which to invest in a lazy way is through seller financing. This is where someone selling a property pays the bank, giving you the finances to buy the property. If you don’t have a good credit score or enough for a down payment, this could be a viable option.

Keep in mind that you pay the loan back in monthly installments, all at quite friendly terms. One of the best things about seller financing is that the individuals involved aren’t bound by any rules, which means you might be able to negotiate a lower down payment and better overall terms.

Investing in Real Estate Without Having to Buy Property

There are many famous finance greats who insist that real estate is the best way to build wealth. That said, only 15% of Americans are currently invested in real estate. There is a mindset that if you don’t have much money, you can’t get involved.

If you want to avoid the hassle of construction, property taxes, dealing with tenants, and any of the other things that come with owning property, there are a few alternatives worth trying.

Master Leasing

The best part about master leasing is that you don’t need to own your own property to make rental income. Using this method, all you need to do is rent a property and then get permission from its owner to be able to sublease it to someone else. This is almost verbatim what partners of Airbnb do.

So, if you rent a condo for $1500 per month, you could rent out each room at a cost that is cumulatively higher, which allows you to net more money than you would have to put in for rent.

Crowdfunding

There is also the concept of crowdfunding, which has become more and more prevalent in recent years. It is still a new concept, but it is one that can potentially lead to a real estate investment without the need to post money upfront.

It can be a great way to invest because there will be property managers involved who are available to deal with the taxes, tenants, building management, and the day-to-day stuff that most investors don’t have the time to deal with.

Conclusion

There is a misconception when it comes to investing the lazy way. It is not necessarily that there is no effort involved. What it comes down to is being able to invest in real estate without having thousands of dollars to invest upfront.

There is a lot of money to be made in the realm of real estate. Knowing how to do so can vary and come in a lot of different shapes and sizes. Knowing how to use those methods to your advantage is the way of the game.

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