Investing in real estate can be a great, albeit scary, thing to get into. While the income potential can be significant, there are a lot of risks involved. Texas residents who are not prepared to dive into real estate investing have several options that allow them to dip their toes in the water — so to speak — and try it out before fully committing.
Here are four of these options:
Passive investing: This allows a person to invest without getting too involved. As a passive investor, one supplies money, then sits back and learns the ins and outs of how things work by watching someone with more experience handle the bulk of the investment.
Shadow someone already in the field: Not ready to put money down just yet? It may be possible to shadow someone who is already a successful real estate investor. This person can become a mentor and teach you how to make a business out of real estate investing.
Start with personal property: One good way to get started in real estate investing is to turn one’s residence into a rental property. Rather than selling when ready to move on to another home, turning one’s residence into a rental property allows one to use what is already on hand to see if this is a path one wants to pursue. People already know the condition of their homes and what expenses to expect, so it isn’t necessarily a big gamble to go this route.
Find a partner: Not ready to take on the full financial risk of real estate investing? Don’t go it alone. Find a partner who will take a portion of the risk.
Seeking help and support
There are several other things Texas residents can do to dip their toes in the waters of real estate investing before they decide if it is something they want to get into full time outside of the items listed here. No matter what steps they take to get into this field, it is wise to seek assistance from legal counsel to make sure any contracts they enter or need drafting work to serve their best interests. An experienced real estate law attorney may also be able to offer assistance dealing with any issues that arise and guidance helping one build a strong real estate investment portfolio.
