Wiser Wealth: Become an Active or Passive Real Estate Investor

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Housing Development

Most people realize that there is significant money to be made in real estate. However, the high cost of getting in is also daunting to those without experience who are fearful of wasting money.

Debt.com had an article on the subject, and here are the highlights of what they recommend for those looking at some of the simplest ways to start their investment.

Focus on Your Own Home

If you are a homeowner, you already have an investment. You might not think of your house as an asset for people to buy, but if you have been taking care of it and making improvements, its value has likely increased significantly.

Flip that House

As seen on many TV shows, this form of investment is more hands-on. Purchase a property that lacks appeal, renovate it, and put it back on the market at its new value. Just be sure you are accounting for all the work a run-down home may need.

Real Estate Funds

If it is the passive side of investment that appeals to you, investment funds are the way to go. This allows you to have some assets in companies without the hassle of being the owner and having to deal with the upkeep.

Investment Platforms

There are a number of online platforms that make passive investments easy to manage. Such sites allow you to gain some assets in commercial and residential real estate without getting overly bogged down by day-to-day management. Some of your options include DiversyFund, RealtyMogul, and CrowdStreet, just to name a few to get you started.

Being a Landlord

If you prefer to be more hands-off, you can earn money by being a landlord and hiring a property manager to handle whatever upkeep the tenants need. Or if you like taking the reins, save money on the property manager and handle those responsibilities yourself.

Institutional Real Estate Ownership

Fred Hubler, Chief Wealth Strategist for Phoenixville-based Creative Capital Wealth Management Group, a wealth management practice that services families in 28 states and specializes in retainer-based planning and alternative investment strategies, advises his clients to take a consider investing in institutional real estate using DST’s so they can be partial owners of larger properties. 

“With markets at all-time highs and interest rates most likely going up,” says Hubler, “the traditional stock and bond portfolio has some headwind to put it mildly. Our clients benefit from our access to large institutions and we can invest side by side with them if it fits the goals of our clients.”

Depending on how much involvement you want with your real estate investments, there are some appealing options for investors of all levels.

Debt.com expands on a lot of these subjects in their article, so if you want more information, be sure to read their article here.

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Fred Hubler of Creative Capital Wealth Management

Want to know if you’re on the right path financially? CCWMG’S Second Opinion Service (SOS) is a no-obligation review with one of  Creative Capital Wealth Management Group‘s Wealth Strategists. 

It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting with Fred and his team.

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