Are you wondering whether to put money into real estate in a different way, other than, say, being a conventional landlord? If yes, here is the good thing: you have more ways now than before to do it without the minutiae of a landlord’s work like handling tenants. Let us take a look at two of those ways to put your funds into real estate.
Hire Real Estate Management Company
As the name implies, property management companies, or real estate managers, will take care of the matters at your property in return for a fee. Many investors seek exposure to properties they can touch and see and get rentals, but they hire a manager to perform most of the work. Hiring such a company or manager can be a good idea, especially if you lack time to manage it by yourself.
It could be that you are living in one place and have a property somewhere else. In this case, a management company, such as the one of Reuven Gradon, will help take care of matters at your rental property.
Are you trying to handle your property from a long-distance? If yes, try working with a manager, and see how it can benefit you in terms of profits and reduced stress. This way, you will technically remain a landlord, although you will not have to do the most arduous of tasks. You will have to pay a percentage of your gross rent to your manager, but it is among the best decisions you will ever make as an investor.
Real Estate Notes
A real estate note is a form of agreement, valid under both federal and state contract laws. It is a form of investment that you can purchase if you are keen on putting money into real estate, yet wish not to manage a building. Those who invest in this product are usually purchasing debt, at rates that are less than what an individual investor would have to pay.
So to do this, get in touch with an investor you know who buys and renovates real estate property. You will likely have a positive experience. However, do your homework to make sure that you understand what you are getting into. You must do your due diligence whether you put money into this product through a property investor, who continues to pursue new properties, or a bank.