Real estate is a preferred investment area for many investors who seek opportunities that not only promise substantial returns but also minimize the associated risks. While there is no foolproof formula, there are definitely several  strategies that savvy investors choose to maximize value without necessarily putting their financial stability on the line. 

The risks of becoming a landlord

In the words of Cardi B, getting properties is a lot of work, and sometimes, there is more stress than one can bear to handle. The US rapper reveals that owning real estate is extremely stressful and it may not be as profitable as one might think. 

As she revealed in a recent Instagram Live, she has tenants who “haven’t even paid fucking rent for like 9 months”. Truth be told, managing a property is a lot of work, and it can sometimes be a lot easier to look in the other direction rather than taking your tenants to court, as she explains. 

Landlords often face this dreaded scenario as some tenants fall behind the rent or fail to pay it on time. The costs associated with resolving these issues can be high, and you may be facing high stress levels as well. While there are ways to handle these hassles, you can also actively choose to steer clear of these hassles. 

The advantages of house flipping

House flipping is a popular choice for experienced investors. The process involves purchasing distressed properties, renovating them, and selling them at a profit. 

While this isn’t necessarily a strategy that works for everyone, if you have the knowledge and the resources, house flipping can be a lucrative venture, and one that can unlock profit within a matter of months. The key is to know the market, understand renovation costs, and have a solid exit strategy. 

This isn’t for the faint of heart, however if you can afford to purchase a property to flip without a loan, you can make substantial gains. 

Purchasing a property without a loan? 

When you decide to buy a house to flip, you will be looking at properties that are in need of repairs, and therefore come at an extremely low price. 

Nevertheless, you need to ensure you have plenty of readily accessible capital that can be redirected into your investment portfolio. One common approach is to rent your home rather than owning it, as you’re not tied to a mortgage loan. For instance, you could consider looking for apartments to rent that come with all the amenities you need at a cost below what you would pay for a mortgage if you were to buy a home. 

Property crowdfunding investments

Another approach may be to look into property crowdfunding as this allows you to invest in real estate projects alongside other investors, This not only spreads the risk but also the costs. As such, you could be receiving a small dividend in passive income, which can go towards your house-flipping venture.

It is worth diversifying your investment portfolio to guarantee a regular source of income that can carry on  while you’re fixing properties before reselling them. Alternatively, you can build your portfolio solely for crowdfunding strategies, which allow you to invest a small amount. You can easily select projects that align with your financial goals and risk tolerance without never having to worry about the responsibilities of a landlord. 

In conclusion, while real estate investments are often synonymous with buying properties, there are many different strategies that don’t involve working closely with tenants.