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<ul class="summary-list"><li><keyword id="35175" type="ORGANIZATION" weightage="60" keywordseo="investing" source="Orion">Investing</keyword> in <keyword id="6354553" type="COMPANY" weightage="60" keywordseo="real-estate" source="Orion">real estate</keyword> can seem daunting.</li><li>We've compiled a list of our stories with expert advice for having success in the space.</li><li>Tips range from financing strategies to how to overcome being intimidated.</li></ul><p><a href="https://www.businessinsider.com/category/real-estate-investing">Investing in real estate</a> can be one of the most effective ways to build wealth. </p><p>But it can also be a difficult thing to get started in, with often-prohibitive down payments and marketplace competition driving up prices to unattainable heights. The process can also be intimidating to first-time investors financially, legally, and in terms of time commitment. </p><p>But <keyword id="-541" type="UNKNOWN" weightage="60" keywordseo="real-estate-investing" source="Orion">real estate investing</keyword> doesn't have to be exclusive and convoluted: there are tried and true strategies investors can use to begin building a portfolio of properties even if they don't have a pile of cash ready to deploy. We know because we've talked to people who have put them into action. </p><p>Below we've compiled several stories highlighting the various methods that investors have successfully used in the real estate world. </p><div type="image" title="House for sale US" height="1674" width="2232" msid="85398142" hostid="261"></div><h2><a href="https://www.businessinsider.com/how-to-buy-your-first-rental-property-advice-strategy-turner-2021-5?r=realestate-lp">Real-estate investor Brandon Turner owns 1,500 units and achieved financial independence by age 27. He shares 6 steps for buying a first rental property within 3 months. </a></h2><p>Arguably nobody does more for providing investors with the material they need to get started in or continue building their real estate portfolios than Brandon Turner. Turner is the founder of <a href="https://www.biggerpockets.com/">BiggerPockets</a>, a site that educates and provides a platform for investors in the space. He also co-hosts the "BiggerPockets Podcast," which highlights successful real estate investors. </p><p>In May, we wrote about an episode of Turner's podcast in which he unpacked six steps to buying a first property within three months. Turner bought his first property when he was 21.</p><p>Step one? Figure out what's motivating you to get into real estate investing.</p><div type="image" title="Austin, Texas real estate homes" height="1875" width="2500" msid="85398144" hostid="261"></div><h2><a href="https://www.businessinsider.com/real-estate-investing-strategy-how-to-start-little-no-money-2021-8?r=realestate-lp">Kumar Sadaram bought his first rental property in 2012 and now owns more than 50 homes. He breaks down the strategy that finally propelled him to financial independence — and shares 3 ways to get started in real estate with little to no money.</a></h2><p>It took Kumar Sadaram a few years to find the strategy that worked best for him. But once he did, he repeated it again and again to build up a portfolio of over 50 properties. </p><p>Sadaram now makes more money per year from rental income from the properties than he did when he was an IT consultant — a job which he quit for good three years ago.</p><p>In addition to sharing with Insider his preferred strategy, he shared his three best tips for those looking to break into real estate without large sums of money. He also shared his advice for overcoming being intimidated by investing in the space.</p><h2><div type="image" title="real estate market single family rental cerberus invitation homes" height="2000" width="2666" msid="85398146" hostid="261"></div></h2><div type="image" title="This is a photo os Sam Primm smiling and standing in front of an outdoor wooded wall." height="3776" width="5035" msid="85835035" hostid="261"></div><h2><a href="https://www.businessinsider.com/real-estate-investing-how-to-own-rentals-zero-money-down-2021-8">At the age of 33, Sam Primm owns 167 rental units after putting zero money down. He told us how he got started on his first property without any experience, and the loans he secured that helped him reach financial freedom.</a></h2><p>Sam Primm used a private lender for his first property, then transferred his loan to a mortgage.</p><p>He now uses hard-money lenders to buy and flip property, while his rental income pays off the mortgages. In an interview, he explained the process for putting these deals together.</p><h2><a href="https://www.businessinsider.com/real-estate-investing-strategy-how-to-acquire-property-no-money-2021-5?r=realestate-lp">Real-estate investor Mike Bryant breaks down the strategy he used to acquire 10 properties 'without putting a nickel into' them — and shares why he recently decided to sell all but 4</a></h2><p>Money is perhaps the biggest hurdle — whether perceived or not — for many when it comes to real estate investing. But there are ways to invest without being rich first. </p><p>Mike Bryant has used a very specific strategy that has helped him acquire 10 properties without first needing to dip into his own funds. </p><p>"Without putting a nickel into any of these, I have a portfolio — between what I've sold already last year and what I haven't sold yet — of more than a half a million dollars of equity, at least on paper, from what I can glean is the market value versus what I owe on these properties," Bryant said on an episode of the "BiggerPockets Podcast."</p><div type="image" title="Deb Cleveland" height="2372" width="3162" msid="85398148" hostid="261"></div><h2><a href="https://www.businessinsider.com/real-estate-investing-strategy-rental-ownership-house-flip-passive-income-2021-7?r=realestate-lp">Deb Cleveland is a master house flipper who maintains 80 rental properties. The 30-year real-estate-investing veteran breaks down how she picks discounted houses to buy, renovate on a budget, and successfully sell or rent for huge profits.</a></h2><p>It's the point of making any investment: returning a profit. To do so, you have to identify assets that are being undervalued by the market. Easier said than done.</p><p>Deb Cleveland has done it. An expert with three decades of experience and a portfolio of 80 properties, she shared with Insider how she goes about finding undervalued properties to rake in big returns.</p><div type="image" title="real estate broker" height="2825" width="3766" msid="85398152" hostid="261"></div><h2><a href="https://www.businessinsider.com/real-estate-investing-financing-strategy-acquisition-units-income-mike-webb-2021-7?r=realestate-lp">Firefighter Mike Webb went from owning a single duplex to acquiring 35 units, all while working 40 hours a week. He breaks down his financing strategies and his favorite approach for adding properties to his portfolio.</a></h2><p>One reason investors can be hesitant to get into real estate is because of amount of time they may think they have to put into maintaining a property. But Mike Webb proves that it can still be done, even while working a full-time job. </p><p>Another reason that gives people pause is financial risk and the work that goes into finding favorable deals. Webb broke down for Insider how he finds deals in a red-hot housing market. </p><div type="image" title="Sharon Tseung and Sean Pan" height="1000" width="1333" msid="85398154" hostid="261"></div><h2><a href="https://www.businessinsider.com/real-estate-investing-strategy-rental-ownership-affordable-high-upside-areas-2021-7?r=realestate-lp">A couple in their 30s breaks down how they came to own 21 rental units in affordable, high-appreciating areas across the country — and share their approach for picking top cities, realtors, and financing strategies</a></h2><p>Again, finding favorable deals can be difficult, especially today. Many variables are involved, like regional population and job growth.</p><p>Sharon Tseung and Sean Pan, a couple in their 30s with 21 rental units, recently shared with Insider their approach to underwriting — analyzing all of the financial aspects of a deal. They also shared how they go about financing their properties. </p><div type="image" title="Aaron Amuchastegui" height="1044" width="1393" msid="85835037" hostid="261"></div><h2><strong><a href="https://www.businessinsider.com/real-estate-investing-single-family-rentals-aaron-amuchastegui-2020-12" target="_blank" rel="noopener noreferrer">295 units in 5 years: How one real-estate investor went from broke to owning hundreds of single-family homes</a></strong></h2><p>Aaron Amuchastegui, a real-estate investor who navigated the 2008 crisis but took a serious financial hit in 2013, revived his portfolio in just five years' time. </p><p>Buying foreclosed homes at auction, Amuchastegui's strategy focuses on "courthouse step" deals, and he prioritizes a long-term investment plan focused on single-family Texas home rentals rather than quick flips.</p><p> In January, we spoke to Amuchastegui about how he's built a multimillion-dollar portfolio that then stood at 295 units, with 24 more properties in escrow at the time. Here's how he did it.</p><div type="image" title="Mike Hills headshot" height="1125" width="1500" msid="85835039" hostid="261"></div><h2><strong><a href="https://www.businessinsider.com/house-hacking-real-estate-investor-started-with-nothing-built-portfolio" target="_blank" rel="noopener noreferrer">How a 41-year-old 'house hacker' built an $8 million real-estate portfolio that would let him retire now — if he wanted to</a></strong></h2><p>Mike Hills has developed a property portfolio worth over $8 million, and he credits his success to "house hacking" — a strategy for multifamily rental properties in which an investor lives in one of their units while collecting rent from the others.</p><p>Hills has spent the past 19 years developing an expansive portfolio, and in October told Insider he now owns a condo, townhouse, duplex, quadplex, apartment, trailer park, and eight single-family homes.</p><p>Doubtful that he'd ever want to retire, he said he could. And he shared the strategy he used to maximize his portfolio.</p><div type="image" title="Tony Julianelle Headshot" height="1125" width="1500" msid="85835040" hostid="261"></div><h2><strong><a href="https://www.businessinsider.com/investing-strategy-property-management-ceo-2020-7" target="_blank" rel="noopener noreferrer">How a financier turned property management CEO went from losing money on his first rental to raking up a portfolio worth $3.5 million and counting</a></strong></h2><p>After a 20-year career at Wells Fargo, Tony Julianelle decided it was time for something new. </p><p>Now, he's CEO of Colorado-based property management firm Atlas Real Estate, where he has developed a personal property portfolio worth around $3.5 million and counting, he told Insider last year. </p><p>Focused on accumulating a portfolio of wealth-generating assets he can pass to his children, Julianelle's investment strategy is grounded in buying and holding real estate in a long-term, appreciating market.</p><p><em>Follow the broader real estate investing space <a href="https://www.businessinsider.com/category/real-estate-investing">here</a>.</em></p>

How to invest in real estate: Your complete guide to building up a portfolio of properties, according to experts

<br />As investment options, real estate and gold have their own advantages and downsides. Comparing between these choices aided by an informed knowledge will let you know which one to choose for your specific situation and needs. <br /><strong><br />The bottom line</strong><br /><br />When approached correctly, <keyword id="35278" type="PERSON" weightage="20" keywordseo="real-estate-investment">real estate investment</keyword> can be a highly profitable and reliable option for investors for generating substantial returns. It can also create a regular flow of income while carrying some attractive benefits like tax advantage, lesser risk investment mode and diversification possibilities. On the other hand, investing in gold is a highly preferred option for Indians for a number of reasons. For many generations, gold is passed on as assets.<br /><br />Flexibility is the topmost benefit that people enjoy while investing in gold. It is possible to purchase any small quantity of gold depending on the amount you look forward to invest. <keyword id="113735" type="PERSON" weightage="20" keywordseo="gold-investment">Gold investment</keyword> can range from a few thousands of rupees to several lakhs and corers depending on how much you can afford to invest. <br /><br />Real estate and gold investment comparison<br /><br /><strong>Investment size</strong><br /><br />In case of real estate, the investment size is huge. The prices of land are growing and you will need a lump sum amount to make the down payment as most real estate purchase deals are effected through debt financing. The size of investing in gold depends on your choice. You can buy as less as 1 gram of gold to any bigger quantity. It is advisable to buy gold coins or gold bullion instead of gold jewelry for avoiding the making charges. <br /><br /><strong>Tenure of investment</strong><br /><br />Real estate is an ideal option for long term investment. Gold investment can be thought fo both for short term as well as long term. However, if you invest in gold over long term, you will be assured of higher returns. <br /><br /><strong>Earning potential</strong><br /><br />If you need monthly income on a regular basis, real estate investment is the right option that can leave you with liquid cash. If the property is rented out, the monthly rental amount generated can help cover the mortgage. Gold investment is prone to be impacted by market fluctuations. When the price of gold drops, the investment value also comes down. <br /><br /><strong>Liquidity</strong><br /><br />Real estate investment is characterized by lesser liquidity as against gold. It might take months or even years to sell your property. Real estate selling also involves a huge amount of paper work and other official formalities which will make the process long and cumbersome. The stamp duty expenses will make property selling a matter of big concern.<br /><br />Tax benefits<br /><br />Real estate is characterized by structured tax benefits. The aspects like depreciation, maintenance costs, legal service expenses and others are considered for calculating tax. Gold investment will attract capital gains tax. In case of gold deposit certificates, the profits made is completely tax exempt. <br /><br />Price transparency<br /><br />Real estate prices are not as transparent as the gold prices. Gold is actively traded in the market and hence everyone can get to know the gold prices immediately. It might be difficult to get the past date while selling a property. <br /><br />Take home<br /><br />The choice of gold or real estate for investment will depend on what you expect from your investment, how long are you prepared to hold the investment and other considerations. <br /><br /><br /><br />

Gold vs Real Estate which is better for investment?

<br />Investment experts advise that your investment portfolio must be a balanced mix of low risk and medium risk investment options. The rule of thumb in investments are lower risk investments get you lower returns and you are likely to get high returns from high risk investments. Nevertheless, most of the time low risk investments provide you stability and guaranteed returns. Depending on how much risk you are willing to take and what kind of flexibility you want, you must choose the investment option that is right for you. <br /><br />For quite long, fixed deposits (FD) and real estate have been among the most popular investment vehicles. However, they are dissimilar products and cater to different kinds of needs of the investors. Depending on whether you are planning for a short term or a long term investment, you must choose between these two options. Here are the considerations you must note while choosing between FDs and Real Estate. <br /><br /><strong>Assured returns in FD </strong><br /><br />Most people imagine that property prices will always be on the rise. Once upon a time, property prices in India did shoot up dramatically. It is highly possible that the market will stagnate or prices might drop at some times. At the same time, if you wish to invest with large gains in mind, real estate has more to give you. If guaranteed results and a risk free investment combined with high levels of liquidity is your expectation, it is better to invest in a FD scheme. <br /><br />Profit and affordability<br /><br />People sometimes use all their savings or even take a loan to buy property. This is quite understandable. But, make sure you will be able to sell the property for a profit. It is important to figure out the imbalance between the purchasing power and the skyrocketing rates of real estate in the country. For instance, the price of a 1BHK flats in a top city in India is around 2 crore. If you need to take a 20 year loan to buy this flat, you have to pay EMIs that will be more than a lakh per month. This will mean you must earn between 3 to 4 lakhs per month. Hence when trying to invest in real estate, ask yourself if you can afford it. In case of FD, you need not ask these questions. You can open up a FD account with as less as Rs 20,000 and earn stable returns on it. <br /><br />Additional expenses in Real Estate <br /><br />Besides the payment for the apartment or property, you will have to manage the other expenses while investing in real estate, namely the stamp duty, ownership titles, registration charges, maintenance charges for the property and others. In some cases, the rate of returns guaranteed from <keyword id="35278" type="PERSON" weightage="20" keywordseo="real-estate-investment">real estate investment</keyword> worked out to just 2.5% annually. Compare this with the fixed deposits where the interest rates are far better. This fact goes into say that you must know the market trend in the place where you by the property to be able to make the right decision. <br /><br />Conclusion between FD vs Real Estate <br /><br />Comparing between real estate and <keyword id="7317577" type="UNKNOWN" weightage="20" keywordseo="fd-investment">FD investment</keyword> need to take care of all the above said points. You need to get the property valued and the market conditions thoroughly understood before investing in real estate. If you can mobilize the money to buy the property, can't wait for a long time to sell, you can invest in real estate or FD is a safer and convenient form of investment for you. <br /><br /><br /><br />

Real Estate vs FD which is better for investment?

<ul class="summary-list"><li><keyword id="35175" type="ORGANIZATION" weightage="60" keywordseo="investing">Investing</keyword> in real estate can offer individuals both immediate income and longterm appreciation. </li><li>REITs, RELPs, and crowdfunding are indirect ways to invest in real estate, without requiring hands-on management. </li><li>More direct real estate investments include buying your own home, a rental property, or a property to fix up and flip.</li></ul><p>Channel-surfing these days will almost certainly lead you into some iteration of real estate, from realtors' million-dollar listings to DIY-ers house-flipping. </p><p>While it can be fun to see a dramatic home transformation play out over the course of an hour, it can be more fun to get actively involved. Real estate often proves to be a lucrative investment, offering both income - in the form of rents - and appreciation - when you sell appreciated property at a profit. It's also a good way to <a href="https://www.businessinsider.com/how-to-diversify-portfolio" target="_blank" rel="noopener">diversify your portfolio</a>, as an asset that's subject to different influences than stocks and bonds.</p><p>And for the everyday individual, it may be more accessible than you think. Although it requires considerable time, patience, and (of course) cash, almost anyone can invest in real estate. </p><p>Here are six ways you can get in on this investment-cum-pop-culture-phenomenon.</p><h2>1. Real estate crowdfunding </h2><p>Real estate crowdfunding is a strategy that allows enterprises to raise capital from large groups of individuals. It's done via online platforms that provide a meeting ground/marketplace between real estate developers and interested investors. In exchange for their money, investors receive debt or equity in a development project and, in successful cases, monthly or quarterly distributions. </p><p>Not all real estate crowdfunding platforms are available to everyone: Many are reserved for accredited investors - that is, high-net-worth, and/or highly experienced individuals. Still, there are several less exclusive platforms like <a href="https://www.businessinsider.com/reviews/out?u=https%3A%2F%2Ffundrise.com%2F" target="_blank" rel="noopener">Fundrise</a> and <a href="https://www.realtymogul.com/" target="_blank" rel="noopener">RealtyMogul</a> that allow newbies to invest as little as $500. </p><p>Through these sites, you create an account and either select a portfolio strategy based on your goals, with brokers diversifying your money across a series of investment funds, or browse and select investments yourself, keeping up with their progress through a 24/7 online dashboard. </p><p>Despite their convenience, crowdfunding offerings come along with considerable risk. As private investments, they're not as liquid (easily sold) as other publicly traded securities, like stocks. Think of your funds as being tied-up over the long-term. Fundrise recommends investors have a time horizon of at least five years, for example.</p><h2>2. Real estate investment trusts (REITs)</h2><p>If you want to wade into real estate, investing in a <a href="https://www.businessinsider.com/personal-finance/real-estate-investing-for-beginners-how-to-invest-in-reits">real estate investment trust (REIT)</a> will provide exposure to the market without the time and cost commitment of buying your own property. </p><p>REITs are companies that own, operate, or finance properties and real estate ventures. Like <a href="https://www.businessinsider.com/etf-vs-mutual-fund" target="_blank" rel="noopener">mutual funds or exchange-traded funds</a>, they own not just one, but a basket of assets. Investors purchase shares of a REIT and earn a proportionate share of the income produced by those assets.</p><p>Equity REITs, the most common type of REIT, allow investors to pool their money to fund the purchase, development, and management of real estate properties. A REIT focuses on a specific type of real estate, such as apartment complexes, hospitals, hotels, or malls. Ninety percent of its annual earnings must be distributed to the investors as dividends.</p><p>One big selling point of REITs: Most of them trade on public stock exchanges. So that means REITs combine the opportunity to own, and profit from, real estate with the ease and liquidity of investing in stocks. </p><p>Geared towards generating income, usually from rent and leases, REITs offer regular returns and high dividends. They also appeal to investors because of the unique way that they are taxed: REITs are structured as pass-through entities, meaning they don't pay corporate tax. This effectively means higher returns for their investors. </p><p>If you want to keep your investment liquid, stick to publicly traded REITs (a few REITs are private ventures). You can buy shares through a brokerage firm, IRA, or 401(k). </p><h2>3. Real estate limited partnerships</h2><p>A <a href="https://www.businessinsider.com/real-estate-limited-partnership-relp-definition" target="_blank" rel="noopener">real estate limited partnership (RELP) </a>provides investors with a diversified portfolio of real estate investment opportunities, allowing you to merge your funds with other investors' to buy, lease, develop, and sell properties that would be hard to manage or afford independently.</p><p>Like REITs, RELPs usually own a pool of properties, but they differ in their structure and organization. Primarily: RELPs are a form of private equity - that is, they are not traded on public exchanges</p><p>Instead, they exist for a set term, which typically lasts between seven and 12 years. During this term, RELPs function like small companies, forming a business plan and identifying properties to purchase and/or develop, manage, and finally sell off, with profits distributed along the way. After the holdings are all dispatched, the partnership dissolves. </p><p>They're generally more suitable for high-net-worth investors: Most RELPs have an investment minimum of generally $2,000 or above, and often substantially more - some set minimum "buy-ins" anywhere from $100,000 to a few million, depending on the number and size of the property purchases.</p><h2>4. Become a landlord </h2><p>One classic way to invest in real estate is to buy a property and lease it, or part of it. Being a landlord can come in many forms.</p><p>The first is to buy a single-family home and rent it out, a strategy that will only generate income if overhead costs are low. If your tenant's rental payment doesn't cover the <a href="https://www.businessinsider.com/fixed-rate-mortgage-vs-adjustable-rate-mortgage" target="_blank" rel="noopener">mortgage</a>, insurance, taxes, and maintenance, you're effectively losing money. Ideally, your monthly mortgage payment will be relatively fixed, while rent prices rise, increasing the amount of money you pocket over time.</p><p>Nowadays, you can shop for rental properties online through a site like <a href="https://www.roofstock.com/" target="_blank" rel="noopener">Roofstock</a>, which allows sellers of vacant homes primed for renters to list their properties, facilitates the buying process, and assigns a property manager to the new buyer.</p><p>Another option is "house-hacking," which is when you purchase a multi-unit building and live in one of the units while renting out the others. This strategy decreases your living expenses while simultaneously generating income that can cover mortgage payments, taxes, and insurance. </p><p>A low commitment version of house-hacking is to rent part of your home via a site like Airbnb, which would allow you some extra monthly cash without having to commit to taking on a long-term tenant.</p><p>On the opposite, more ambitious end, you could aim for a condo conversion, in which you buy a multifamily building, rent out the units, and then later turn the units into condos and sell them off individually, says Boston-based realtor and real estate investor <a href="https://www.businessinsider.com/strategy-for-making-money-in-real-estate-investing-2017-3" target="_blank" rel="noopener">Dana Bull</a>. "So the idea is, you buy the building for a little bit of a discount, and then eventually you're able to sell for top dollar," she says.</p><h2>5. House flipping</h2><p>Some people take it a step further, buying homes to renovate and resell. Though those TV shows often make it look easy, "flipping" remains one of the most time-consuming and costly ways to invest in real estate. But it also has the potential to produce the biggest gains. </p><p>To be a successful flipper, you should always be prepared for unexpected problems, budget increases, time-inducing mistakes, a longer renovation timeline, and issues selling on the market.</p><p>It's especially important to build a team of experts - contractors, interior designers, attorneys, and accountants - you can trust. And make sure you have the cash reserves to troubleshoot. Even experienced flippers find a project inevitably takes longer and costs more than they think.</p><h2>6. Invest in your own home</h2><p>Finally, if you want to invest in real estate, look closer to home - your own home. Homeownership is a goal many Americans strive to achieve, and rightfully so. Residential real estate has had its ups and downs over the years, but it generally appreciates in the long-term.</p><p>Most folks don't buy a home outright, but take out a mortgage. Working to paying it off, and owning your home outright, is a long-term investment that can protect against the volatility of the real estate market. It's often seen as the step that precedes investing in other types of real estate and has the added benefit of boosting your net worth, since you now own a major asset.</p><h2>Strategies for successful <keyword id="-541" type="UNKNOWN" weightage="60" keywordseo="real-estate-investing">real estate investing</keyword> </h2><p>Whatever form your real estate investment takes, certain strategies will stand you in good stead.</p><ul><li><p><strong>Be financially prepared: </strong>Real estate is a particularly expensive investment, so you need to have cash on hand for a down payment, partnership share, or to buy a property outright. You'll also need a reserve to dip into if and when something needs fixing, which should be entirely separate from your everyday emergency fund. Before getting started, establish an <a href="https://www.businessinsider.com/online-savings-account-high-yield-emergency-fund-2019-1" target="_blank" rel="noopener">emergency fund</a>, pay off consumer debt, and automate your retirement savings.</p></li><li><strong>Get to know the local market:</strong> There's an old saying: "The three most important factors in real estate are location, location, location." Start by getting to know <a href="https://www.businessinsider.com/how-to-build-wealth-real-estate-investing-advice-2018-6" target="_blank" rel="noopener">the local market</a>. Talk to <a href="https://www.businessinsider.com/things-real-estate-agents-wish-clients-knew-2019-5" target="_blank" rel="noopener">real estate agents</a> and locals; find out who lives in the area, who is moving to the area, and why; and analyze the history of property prices. In short: Do your research and "focus on building relationships with people - because that's what real estate is, it's a relationship-based business," Dana Bull says.</li><li><p><strong>Keep it simple:</strong> A simple strategy can go a long way in real estate investing. If your goal is to generate <a href="https://www.businessinsider.com/investment-income-assets">passive income</a>, don't be fooled into believing you need to go big to make it happen. It's best to start small and keep your expenses low, says real estate investor Chad Carson of <a href="https://www.coachcarson.com/" target="_blank" rel="noopener">CoachCarson.com.</a></p></li></ul><h2>The financial takeaway</h2><p>Real estate investing may be more accessible than you think, and there are multiple ways to get involved in this often lucrative asset. </p><p>Pure investment plays - which don't involve hands-on management from you - include real estate crowdfunding, investing in real estate limited partnerships, and buying into real estate investment trusts. Each of these mitigates the risk of investing in a major project alone or without guidance.</p><p>More direct investments, like buying your own home, a rental property, or a property to fix up and flip, are also valuable strategies. However, it's best to do your homework before settling on one of these ownership methods, ensuring that you're financially secure enough to take on some risk and familiarizing yourself with the local real estate market.</p><p>Bear in mind real estate as a whole is a relatively illiquid asset. Projects can take a while to execute and to pay off. So whenever you think real estate, you almost always have to think of it as a long-term investment.</p><h2>Related Coverage in <a href="https://www.businessinsider.com/investing-reference" target="_blank" rel="noopener">Investing</a>:</h2><h3><a href="https://www.businessinsider.com/what-are-alternative-investments" target="_blank" rel="noopener">Alternative investments are exotic assets that can diversify your portfolio - here are the five major kinds and everything you should know about them</a></h3><h3><a href="https://www.businessinsider.com/personal-finance/real-estate-investing-for-beginners-how-to-invest-in-reits" target="_blank" rel="noopener">Millennials say real estate investing is one of the best ways to build wealth, and you don't need a ton of time or money to start</a></h3><h3><a href="https://www.businessinsider.com/personal-finance/why-im-investing-in-real-estate-to-fund-my-retirement-2020-4" target="_blank" rel="noopener">The richest people I know have convinced me investing in real estate is critical for my portfolio, and I'm tackling it in 3 ways</a></h3><h3><a href="https://www.businessinsider.com/the-latest-coronavirus-and-commercial-real-estate-news-2020-3" target="_blank" rel="noopener">From warehouses to tech office expansions, these are the key commercial real-estate deals and trends to watch</a></h3><h3><a href="https://www.businessinsider.com/how-to-get-started-investing-in-real-estate-during-covid-2020-8" target="_blank" rel="noopener">How to begin investing in real estate, and why you should get started during the pandemic</a></h3>

How to invest in real estate - 6 ways that offer a chance to make money and build long-term wealth

<ul class="summary-list"><li>Bryce Stewart worked as a middle school teacher in the small city of Bethlehem, <keyword id="106037" type="ORGANIZATION" weightage="60" keywordseo="Pennsylvania">Pennsylvania</keyword>.</li><li>Stewart used savings and a loan from his in-laws to start buying properties to rent out in 2009.</li><li>He retired from teaching at 35 due to rental income from tenants, which can total $20,000 a month.</li></ul><p>You could learn something from this former teacher.</p><p>Meet Bryce Stewart, a middle school teacher turned real-estate investor in Bethlehem, Pennsylvania. </p><p>In 2009, he bought one property to rent out using a small sum from his own savings - after all, he made just $50,000 a year - plus a loan from his in-laws. Once Stewart found tenants, he continued to buy properties, using less traditional loans and tactics to come up with capital for the down payments. </p><p>Stewart now pockets up to $20,000 a month in passive income from 37 properties he owns in Bethlehem, a small city less than 90 miles from both New York and Philadelphia.</p><p>Because of his real-estate investing successes, he was able to quit his day job in 2015, at the age of 35. Stewart's creative strategies to become a landlord 37 times over paid off and enabled his early retirement. </p><p>In an exclusive interview with Insider, Stewart explained how he financed the growth of his real-estate portfolio from just one unit to 37 despite having very little savings. </p><h2><a href="https://www.businessinsider.com/real-estate-investing-passive-income-teacher-retires-early-2021-2?r=retireearly-teaser">SUBSCRIBE TO READ THE FULL STORY: Bryce Stewart breaks down exactly how he retired at 35 and rakes in $20,000 a month in passive income from real-estate investing</a></h2>

Teacher Bryce Stewart shares how he retired at 35, quitting his $50,000-a-year job to make $20,000 a month as a small-time landlord

<p>I was just 29 years old when I closed on my two-unit building in September 2015. As a <keyword id="11893295" type="UNKNOWN" weightage="100" keywordseo="real-estate" source="Orion">real estate</keyword> reporter, I knew the local market in Chicago pretty well and had an understanding of which neighborhoods I could afford, and which neighborhoods would likely offer a good return on the investment. But in terms of actually owning and managing a property, I had no idea what I was doing.</p><p>It turned out that within a year of purchasing the property, I was already getting phone calls from investors and developers looking for new opportunities in the neighborhood. While I initially rejected the idea of selling to a developer — for the fact that they all requested a zoning contingency clause which could not only take months to wrap up, but also upset direct neighbors — as time went on and I received more interest from investors, I decided to entertain offers.</p><p>The building is situated on a double lot less than two blocks from a major public transit station, so for the right investor, there is a lot of value in redeveloping the property with ground-level retail and condos on upper floors. Over time, I had gained more knowledge about the local zoning process and had negotiated with a handful of developers. At one point, I entered into a contract with one of the developers, but eventually got out of the deal once their zoning contingency period ended and discovered that they had not made much (if any) progress on that front.</p><p>However, in the weeks before the pandemic, I had been negotiating with two separate developers who were interested in buying only the side lot to build a few condos on, while I would keep the existing two-unit building on the adjacent lot. I thought, well, if I can get one of the developers to pay me enough to cover the remaining balance of my mortgage, then I could own my building free and clear and then live off of the rental income. Sounds easy enough, right? Wrong.</p><p>"This would screw everything up," my <keyword id="14148684" type="UNKNOWN" weightage="60" keywordseo="accountant" source="Orion">accountant</keyword> said to me when I told him about the plan to enter into a zoning contingency contract with a developer for the side yard. </p><p>In the first year I did taxes with my accountant, he assigned different values to the building and the side yard in my depreciation schedule in order to help me get the biggest tax refund each year. He assigned a higher value to the building than the land — which is customary — meaning that I would likely owe tens of thousands in capital gains if I sold just the side yard alone. And after paying capital gains tax, I'd still likely need another mortgage or some kind of loan to cover what I would still owe on the house after completing such a deal. </p><p>He suggested that I go back to the developer to renegotiate the deal and to sell the entire property, but at this point, I realized that I had already screwed up and wasted everyone's time. Even if I did sell the entire property in one deal, I'd still owe tens of thousands of dollars in depreciation recapture — or essentially, I'd have to pay back much of <a href="https://www.businessinsider.com/personal-finance/are-home-improvements-tax-deductible">the taxes that I had written off</a> in the years that I have owned the property. In the end, we decided that the smartest decision would be to just kill the deal and keep the property. </p><p>This was only one lesson I learned in the first few years of my experience as a first-time homeowner and landlord.</p><p>To read the three lessons in full, see our story below: </p><h1><a href="https://www.businessinsider.com/real-estate-investing-first-time-homeowner-landlord-tips-important-lessons-2022-6?r=re-lessons">I became a first-time homeowner and landlord at 29. These are the 3 most important lessons I've learned in the past 7 years of owning and managing a rental property.</a></h1>

I'm a small-time real-estate investor, and my accountant helped me avoid a costly mistake. Here are the 3 most crucial lessons I've learned from my experience.

New Delhi [India], May 12 (ANI): India received foreign institutional inflows worth USD 26.6 billion into <keyword id="6354553" type="General" weightage="20" keywordseo="real-estate" source="Orion">real estate</keyword> during the six-year period from 2017 to 2022, a three-fold rise from the preceding six-year period, according to Nasdaq-listed investment management company Colliers.<br /><br /><keyword id="396143" type="General" weightage="20" keywordseo="foreign-investments" source="Orion">Foreign investments</keyword> in India have been on the rise over the last few years as the industry underwent an overhaul, with major structural, policy reforms inducing transparency and ease of business operations, according to Colliers' 'India- High on Investors' Agenda' report.<br /><br />The report delves into the factors that make India a preferred choice for global investors and how it has stepped ahead of other emerging economies.<br /><br />According to the report, foreign investments accounted for a sizeable share of 81 per cent of the total investments in real estate during 2017-22.<br /><br />"The country's investor-friendly FDI policies, increased transparency in deal structures, and higher investment limits through the direct route have encouraged global investors to invest in India's real estate sector," Colliers said.<br /><br />Institutional investments in real estate continued to remain upbeat in January-March 2023 as well, rising by 37 per cent year-on-year at USD 1.7 billion, led by the office sector.<br /><br />"India's favourable demographic indicators, deep digital talent pool, developmental government policies, infrastructure advancements and competitive costs have made it one of the top choices for global enterprises, fueling real estate demand in India. The strong economic and business fundamentals are enhancing institutional investors' sentiments; forging strategic partnerships to expand their portfolios," said Sankey Prasad, Chairman and Managing Director at Colliers India.<br /><br />From the perspective of global and Asia Pacific investors, the Indian property market currently offers attractive pricing, better valuations, and higher yields on assets.<br /><br />At the Asia Pacific level, India has become a preferred investment destination as Indian cities offer higher yields compared to other cities in the region at relatively lower pricing points. Major Indian cities like Bengaluru and Mumbai occupy the second and third positions, respectively, in terms of commercial yield on real estate assets across the region. <br />

Indian real estate saw 3x  rise in foreign institutional investments during 2017-22: Colliers

<ul class="summary-list"><li>Real estate investing can generate interest, dividends, rental income, business income, and capital gains, depending on how the investment is structured.</li><li>If you invest in a rental property, you can reduce your taxable income by subtracting any expenses for managing and maintaining the property to rent.</li><li>A 1031 exchange allows real estate investors to swap one rental property for another, deferring capital gains on the transaction.</li></ul><p>There are many reasons you might want to invest in real estate. Owning property can offer income through appreciation - when the home's value increases over time - and can be a source of passive income if you rent it out. And it's a good way to diversify your investment portfolio.</p><p>Investing in real estate also brings tax benefits, like the ability to write-off certain expenses for income properties. But like all things related to the IRS, <keyword id="4480341" type="PERSON" weightage="60" keywordseo="real-estate-taxes">real estate taxes</keyword> can be pretty complex. Below is a look at the tax implications of real estate investing, along with the major tax benefits to keep top of mind. </p><h2>What types of taxes is real estate subject to?</h2><div type="image" title="property tax" height="1666" width="2222" msid="82105886" hostid="261"></div><p>When dealing in real estate, the kinds of taxes you'll be subjected to will depend on whether you're a property owner or simply an investor. For example, if you own a home or condo and rent it out, you'll pay property taxes to your state or local government, income taxes on the rental income you earn, and capital gains taxes if you later sell the property at a gain. </p><p>That's very different from investing in real estate through crowdfunding, a real estate investment trust (REIT) or a real estate limited partnership (<a href="https://www.businessinsider.com/real-estate-limited-partnership-relp-definition" target="_blank" rel="noopener">RELP</a>). Without the hassle of actually owning a property, the taxes you're subjected to are individual income taxes.</p><p>Here is an overview of the different types of taxes you might pay when you own or invest in real estate.</p><h3><strong>Property taxes</strong></h3><p>State and local governments impose property or real estate taxes annually to help pay for schools, police and fire departments, roads, and other state and local services. Property taxes are usually based on the property's assessed value, including the land, buildings, and other improvements. Property tax rates vary greatly depending on <a href="https://www.businessinsider.com/personal-finance/average-property-taxes-every-us-state" target="_blank" rel="noopener">what city and state you live in</a>. </p><h3><strong>Net investment income tax (NIIT)</strong></h3><p>Some types of real estate investing result in <a href="https://www.businessinsider.com/investment-income-definition" target="_blank" rel="noopener">investment income</a>, such as interest and <a href="https://www.businessinsider.com/what-is-a-dividend" target="_blank" rel="noopener">dividends</a>. If you're a high earner and make a lot of money off of your investment income, you will have to pay NIIT, which the IRS applies at a 3.8% rate to certain net investment income. The IRS has outlined <a href="https://www.irs.gov/newsroom/questions-and-answers-on-the-net-investment-income-tax" target="_blank" rel="noopener">on its website</a> who is subject to paying this type of tax, which is based on filing status and modified adjusted gross income (MAGI). </p><h3><strong>Real estate income tax</strong></h3><p>When you rent out real estate, the rental income is considered passive income and is taxed as regular income. Just make sure you meet the IRS' definition of what's considered passive income, which you can do by taking the <a href="https://www.irs.gov/publications/p925" target="_blank" rel="noopener">material participation test</a> to determine whether you actively participated in a business or if it's truly passive income.</p><h3><strong>Business income tax</strong></h3><p>In some cases, renting out real estate counts as a trade or business. This happens only if you provide more than basic services. For example, you could buy a property and turn it into a bed and breakfast, providing linens and meals for guests.</p><h3><strong>Capital gains</strong></h3><p>Selling real estate can also generate <a href="https://www.businessinsider.com/capital-gains-tax-rates" target="_blank" rel="noopener">capital gains</a> if you sell the property for more than its cost basis. Your cost basis is the price you paid for the property, plus any acquisition expenses and improvements, minus depreciation.</p><p>Your tax rate will depend on whether it qualifies as a short- or long-term capital gain.</p><p>Short-term capital gains are from selling assets owned for less than a year, which are taxed at ordinary income tax rates. Long-term capital gains are for assets owned for a year or more and are taxed at a lower rate than ordinary income, with rates ranging from 0% to 20%, depending on your total taxable income.</p><h3><strong>Individual income taxes</strong></h3><p>If you're simply an investor and don't actually own property, any gains earn interest income taxed at the same rate as your other ordinary income.</p><h2>How different <keyword id="640168" type="PERSON" weightage="60" keywordseo="Real-estate-investments">real estate investments</keyword> are taxed</h2><div type="image" title="Property tax landlord" height="1666" width="2222" msid="82105888" hostid="261"></div><p>The taxes you pay on real estate investments depend on the type of investment and the type of income it generates. Here are the four different types of real estate investments and how each are taxed.</p><h3>1. Rental property</h3><p>When you purchase a property and rent it out, you'll owe taxes on your net rental income. This means you're allowed to reduce your taxable rental income by subtracting expenses for getting the property ready to rent and then managing and maintaining it.</p><p>Rental income is taxed at the same rate as other ordinary income, such as wages from a job. <a href="https://www.businessinsider.com/personal-finance/what-tax-bracket-am-i-in-federal-income-tax" target="_blank" rel="noopener">Federal income tax rates</a> range from 10% to 37%, depending on your total taxable income. If you're in the 24% federal income <a href="https://www.businessinsider.com/personal-finance/what-tax-bracket-am-i-in-federal-income-tax" target="_blank" rel="noopener">tax bracket</a>, you'll pay 24% on your taxable rental income.</p><p>However, rental losses are subject to the passive activity loss rules, which can be quite complicated. These rules limit your ability to offset other income with passive losses.</p><p>There are two exceptions that might allow you to used passive losses to offset other income:</p><ul><li><strong>Passive loss allowance</strong>. If your MAGI is less than $100,000, you can deduct up to $25,000 in passive losses against other income. This $25,000 deduction phases out by $1 for every $2 that your MAGI exceeds $100,000. Once your MAGI goes over $150,000, you have no remaining passive loss allowance.</li><li><strong>Qualifying real estate professional</strong>. If you qualify as a real estate professional, your rental activities aren't considered passive income. To qualify, you have to spend more than half of your working time on real estate trades or businesses and spend 750 hours or more on the real property business and rentals.</li></ul><h3>2. Real estate crowdfunding</h3><p>In crowdfunded real estate investing, how you're classified as an investor - non-accredited or accredited  - will affect how you're taxed.</p><p>Non-accredited investors participate in "debt deals," acting only as a lender for other property investors and don't actually own the property. That type of investment generates interest income taxed at the same rate as your other ordinary income and is reported to the IRS using Form 1099-INT. And if you earn more than $1,500 in interest income, you'll also have to <a href="https://www.irs.gov/forms-pubs/about-schedule-b-form-1040" target="_blank" rel="noopener">prepare Schedule B</a>. </p><p>Accredited investors participate in "equity deals." An equity deal gives you shares representing property ownership, and you receive rental income and capital gains. Capital gains may be short-term, in which they're taxed at ordinary income rates, or long-term and qualify for preferential tax rates.</p><p>If you participate in crowdfunding real estate investing, you should receive a K-1 tax form sometime before March 15. This form shows the income or losses from your investment during the prior year and you will use it to complete your individual income tax return.</p><h3>3. Real estate limited partnerships</h3><p>With RELPs, you can earn rental income and capital gains as you would if you'd invested in real estate on your own. There are two partners in this type of business relationship: a "general partner" who takes on the liability and a "limited partner" who is a hands-off investor.</p><p>A RELP isn't required to pay taxes, although it's required to file a Form 1065 to the IRS to report all income to the IRS. The partners then receive a Schedule K-1, showing their share of the investment's net income. The Schedule K-1 is used to prepare each partners' individual tax return.</p><h3>4. Real estate investment trusts</h3><p>Investing in a REIT typically results in two types of investment returns: dividends and return of capital.</p><p>Dividends from a REIT are usually non-qualified dividends, which are taxed the same as ordinary income. A return of capital is not taxable income, but it reduces your basis in the investment, resulting in higher capital gains when you eventually sell your REIT shares.</p><p>At the end of the year, you should receive a 1099-DIV showing your dividend income from the REIT.</p><h2>Tax advantages of real estate investing</h2><p>Real estate investing offers several tax advantages. </p><ul><li><strong>Lower rates for long-term capital gains</strong>. Real estate tends to appreciate over time, so it's common for real estate investors to sell a property for more than they paid for it. As long as you hold on to the property for more than a year, you can benefit from the favorable tax rates for long-term capital gains.</li><li><strong>You can claim depreciation</strong>. When you use real estate for business purposes or rent it out, you can depreciate - or write off - the property's cost over time, which will reduce your tax bill. The IRS has set depreciation periods for real estate: For residential properties, the depreciation period is 27.5 years and for commercial real estate, it's 39 years. For example, if you purchase a single-family rental property for $100,000, you can deduct $3,363 of depreciation per year. You can also depreciate certain improvements, such as replacing the roof or installing a new HVAC system. </li><li><strong>1031 exchanges</strong>. A 1031 exchange lets real estate investors swap out an investment property for a like-kind property and deferring capital gains. While a 1031 exchange can save you thousands of dollars in taxes, they are complicated transactions and come with a lot of tax rules. For that reason, you should always work with a professional to ensure it's done correctly. </li><li><strong>Rental income is not earned income</strong>. Unlike wages from a job or self-employment income, rental income isn't subject to Social Security and Medicare taxes (FICA). While this isn't an enormous benefit compared to other types of investment income, it can result in significant savings compared to normal earned income. For example, say you get a part-time job in which you earn $20,000 per year. You would owe $1,530 in FICA taxes on your wages. On the other hand, a rental property that brought in $20,000 of income per year would result in no FICA or self-employment taxes.</li></ul><h2>The financial takeaway</h2><p>There are many tax advantages to investing in real estate, but paying taxes on these investment returns can be complicated. In order to be prepared for any tax implications you might expect from real estate investing, it's best to work with a tax professional who can explain which tax benefits might apply to you.</p><a data-type="5d0951da0a28490ffd326967">How to invest in real estate - 6 ways that offer a chance to make money and build long-term wealth</a><a data-type="5fc91283647950039a357685">A real estate limited partnership is like a private fund that lets you profit passively from large property investments</a><a data-type="5fda2ac936173573b4327052">Capital gains tax rates: How to calculate them and tips on how to minimize what you owe</a><a data-type="60011bbb0a996d3d50754f25">Where to invest when interest rates are low - 6 fixed-rate vehicles that offer the best returns</a>

How are real estate investments taxed? What potential investors should know

<br />Among the different investment options you have in front of you, buying a property (investing in real estate) and investing in PPF are two popular avenues. Here we compare between these two kinds of investments to decide which one is better than the other and for what reasons you must choose one or the other.<br /><br /><strong>Real estate investment</strong><br /><br />Real estate investment means buying a property. In this investment option, you buy land or property. Some kinds of properties cost you money on a regular basis to hold them. A vacant parcel of land invites taxes to be paid. For buying and maintaining a property you must spend the money out of your pocket dissolving your earnings and savings or you must take a loan. In some cases the property purchase can become unaffordable when the cost is too high. Some real estate investments can generate cash. For example, we can make a mention about the rental houses, apartment buildings or strip mall. In such cases, the tenants are going to send you checks which you can use to pay off the loan and expenses and keep the rest as profit.<br /><br />Section 84 lets you claim exemptions on the interest paid on home loans. Section 80 C lets you claim tax benefits on repaying the principal amount. The maximum tax saving limit is 1.5 lakh per annum. The short term gains from property is taxed on par with regular income. The long term capital gains are taxed depending on your income and marital status. Depreciation is the largest tax deduction available to you from real estate investment. <br /><br /><strong>PPF (<keyword id="114852" type="ORGANIZATION" weightage="20" keywordseo="Public-Provident-Fund">Public Provident Fund</keyword>) Investment<br /></strong><br />Upon your invested amount, the PPF scheme gives 8% interest. The interest is compounded on an annual basis. You can choose to invest anywhere between Rs. 500 or Rs. 1.5 lakh per year. The investment per year can also be made in several installments or in one lump sum cash. The minimum amount payable to open a PPF account is Rs. 100. The minimum amount required in your account to operate it is Rs. 500. The maturity period of a PPF account is 15 years. You can choose to extend this for five more years after the maturity period. A PPF account cannot be closed before 15 years. Starting from the 7th year of opening the account, you can withdraw cash if you want. Loan facility is also made available from the 3rd year of opening the account. <br /><br />PPF investment is considered under Section 80C of the Income Tax Act of India for tax exemption. This investment is considered under Exempt, Exempt, Exempt tax basket. The tax benefit is for a maximum amount of Rs. 1.5 lakhs per financial year. You can also claim a tax deduction for the PPF accounts of your spouse and children.<br /><br /><strong>Choosing between the two</strong><br /><br />While considering which one is a better form of investment among PPF and real estate, you need to also consider your priorities and expectations from the investment. All real estate properties do not escalate in value. The interest out of PPF though might seem less cannot be underestimated given the long period of investing in this vehicle. However, if flexibility, and liquidity are your expectations, real estate is a better option as you can sell it whenever you want. If you want a risk free investment, PPF can be a good option.<br /><br />

Comparision between Real Estate Vs PPF -- which is better for investment?

<br />Investments can give you maximum returns once you choose the right option and plan them carefully. While no single option is the best in all given circumstances, the right choice ultimately depends on your purpose, whether you wish to invest for a long term or short term and the risks you are willing to take. Here we compare two very familiar investment options including gold and real estate to see which one is the better option. <br /><strong><br />Investing in gold</strong><br /><br />Especially in India, investing in gold is the most popular choice for families. Families in fact treasure gold and pass it on to the next generations as the principal type of family asset. The best advantage of investing in gold is that it provides the greatest degree of flexibility. For instance, you can buy gold in grams depending on how much you wish to invest. Starting from just a few thousands, you can choose to invest up to lakhs depending on your situation and expectations. Also when you wish to get back the invested amount, it is very easy to sell gold. You can do so within hours or even minutes. <br /><br /><strong>Investing in real estate</strong><br /><br />Investing in real estate must be approached correctly with the right knowledge of the market situation and the kind of property you are investing in. If this is done, it can provide a profitable and reliable kind of investment assuring substantial returns in the long run. Some of the other benefits of investing in real estate include possibility to create regular income flow, tax advantages, lesser risks and diversification. <br /><br />Points of comparison between investing in gold and real estate<br /><br /><strong>Investment size</strong><br /><br />Real estate calls for a huge investment depending on the prices of the property you choose. You need a lump sum cash readily in hand to buy a property. If you purchase the property through debt financing, you must bear the additional burden of paying the installments. <br /><br />Gold can be purchased even in small quantities depending on how much you wish to invest and you can keep on adding up to your collection.<br /><strong><br />Tenure of investment</strong><br /><br /><keyword id="35278" type="PERSON" weightage="20" keywordseo="real-estate-investment">Real estate investment</keyword> will suit long term investment with excellent returns. <keyword id="113735" type="PERSON" weightage="20" keywordseo="gold-investment">Gold investment</keyword> is ideal both for short term as well as long term investment. <br /><br /><strong>Earning potential</strong><br /><br />Real estate investment can give you regular monthly income if you go for rental arrangement. You can also use this to manage your mortgages. Gold price fluctuates and the value of your investment can go down depending on the market conditions. <br /><br /><strong>Liquidity</strong><br /><br />Real estate investment has lesser liquidity. You need days or months to sell a property. The process of selling is also lengthy and complex with lot of paper work and documentation. Buying and selling gold is a simple process done very quickly.<br /><strong><br />Tax benefits</strong><br /><br />Real estate investment provides room for tax benefits in the form of deductions in terms of repairs, maintenance costs, depreciation, mortgage payments, and legal services while gold will attract capital gains tax. Depositing in gold deposit certificate is fully exempted from taxation. <br /><br /><strong>Take home</strong><br /><br /><keyword id="7520716" type="UNKNOWN" weightage="20" keywordseo="Gold-or-Real-Estate">Gold or real estate</keyword> – which is a better investment option depends on your situation and purpose of investment and whether you are willing to get locked for a longer time with real estate property for want of more returns or you would like to enjoy the greatest liquidity by investing in gold.<br />

comparison between gold vs real estate: which is better for investment?

<ul class="summary-list"><li>With patience and the right strategies, <keyword id="-541" type="UNKNOWN" weightage="60" keywordseo="real-estate-investing" source="Orion">real estate investing</keyword> can be a path to financial freedom.</li><li>Several people who have used <keyword id="11893295" type="UNKNOWN" weightage="60" keywordseo="real-estate" source="Orion">real estate</keyword> to build <keyword id="11921347" type="UNKNOWN" weightage="60" keywordseo="wealth" source="Orion">wealth</keyword> told us how they got started.</li></ul><p>With patience and time, real estate <keyword id="11896289" type="UNKNOWN" weightage="60" keywordseo="investing" source="Orion">investing</keyword> can yield significant <keyword id="13147044" type="UNKNOWN" weightage="60" keywordseo="passive-income" source="Orion">passive income</keyword>. </p><p>"A lot of people want to time the market, but it's time <em>in</em> the market," property investor and early retiree Michael Zuber told Insider. "That's how you get wealthy. The longer you hold an asset, the wealthier you will become. It is amazing what happens to a portfolio after you've owned it for 10 years." </p><p>Insider spoke to individuals, including Zuber, who have used real estate as a tool to build long-term wealth. Insider has verified the following investors' claims about income and property ownership with documentation they provided. </p><p>Here's how they did it.</p><p><a href="https://www.businessinsider.com/real-estate-investing-tips-millennial-millionaire-quit-full-time-job-2021-12?r=real-estate-wealth-teaser"><strong>Todd Baldwin invested in his first property at age 23 and hasn't looked back. He earns over $1 million a year and is on track to hit a net worth of $20 million before age 35.</strong></a></p><div type="image" title="Todd Baldwin" height="2333" width="3111" msid="89726105" hostid="261"></div><p>Seattle-based real estate investor Todd Baldwin bought his first property at age 23. It was a $506,000, six-bedroom home and he made it work financially by "<a href="https://www.businessinsider.com/how-to-house-hack-real-estate-investing-buying-a-home-2021-12">house hacking</a>," or essentially having rent-paying roommates, which allowed him to live for free in his own home. </p><p>Since he was living for "free," collecting rental income, and earning a six-figure salary from his day job, he was able to save more money and continue buying rental properties. By age 25, Baldwin's net worth crossed $1 million, mostly thanks to rental income, he said. At 28, he became a multi-millionaire and felt comfortable leaving his 9-to-5 to double down on real estate.</p><p>The 29-year-old believes that real estate is a path to wealth. "I'm not going to say it's easy but it's pretty straight-forward," he said. "If you just buy real estate and you hang onto it for 20 years, you're going to sell it for a lot more than what you paid for it."</p><p><a href="https://www.businessinsider.com/buying-first-home-gen-z-real-estate-commissions-boston-wealth-2022-1?r=real-estate-wealth-teaser"><strong>Karina Mejia bought her first home at age 22 and now owns five properties in Boston, where she lives, and Augusta, Georgia. In 2021, she earned $43,000 in rental income.</strong></a></p><div type="image" title="karina mejia 1" height="1934" width="2579" msid="89726108" hostid="261"></div><p>Boston-based realtor and real estate investor Karina Mejia lived at home after graduating and worked three jobs to save up for a down payment.</p><p>If you have the ability to live with family at the start of your career, it doesn't have to be as big of a sacrifice as it may seem, said Mejia, who financed her first home with an FHA loan and put about $20,000 down. "You don't have to think that you're giving up your freedom. It's just a smart financial thing to do for the first year or a couple of months as you're getting started and paying down your loans."</p><p>Today, she owns two properties in Boston and three in Augusta, Georgia. She lives for free in one of her properties in Boston by renting out part of the house. </p><p><a href="https://www.businessinsider.com/real-estate-investing-build-wealth-financial-independence-retire-early-california-2022-2?r=real-estate-wealth-teaser"><strong>Real estate investors Michael and Olivia Zuber own over 100 units and earn over $100,000 a month in rental income. Their real estate portfolio allowed them to retire comfortably in their 40s</strong></a><strong>. </strong></p><div type="image" title="A couple wearing sunglasses takes a selfie in front of the Golden Gate Bridge" height="480" width="640" msid="89726109" hostid="261"></div><p>After losing thousands of dollars in a previous life of day-trading, Michael and Olivia Zuber turned to real estate investing. It started as a way for them to get back on track financially and rebuild their nest egg, but turned into a path to financial freedom. </p><p>The Bay Area-based couple saved up enough to purchase their first property, a $107,000 single-family home, by cutting back on things like eating out, entertainment, and vacations in order to save for their first rental property. </p><p>For years, they worked full-time and lived on half of their income in order to save more and buy more real estate. By 2015, they were earning enough in rental income that Olivia could quit her 9-to-5. Michael followed suit in 2018 and left his software job.</p><p><a href="https://www.businessinsider.com/millennial-real-estate-investor-house-hacking-seattle-property-rental-income-2022-2?r=real-estate-wealth-teaser"><strong>Peter Keane-Rivera bought his first property in Seattle at age 25 despite owing $45,000 in student debt. Today, he owns nine units between his two properties and grosses $102,840 in rental income a year.</strong></a></p><div type="image" title="peter keane rivera" height="3024" width="4032" msid="89726111" hostid="261"></div><p>Peter Keane-Rivera invested in his first property, a $355,000 three-bed, two-bath house, at age 25. He came up with money for the down payment from an early investment in bitcoin and savings he accumulated while working.</p><p>His mortgage payment, plus private mortgage insurance, came out to about $2,000 a month. To offset that cost, he "house hacked" and found two roommates to fill the other rooms. Keane-Rivera moved into the smallest room in his house and rented out the other two for $725 and $900 a month, he said. That dropped his monthly housing payment to $375, or about half of what he was paying as a renter.</p><p>Now, he owns two properties and has nine tenants. His rental income more than covers his mortgages and he lives for free in one of his homes. His goal is to quit his day job within the next two years and focus on real-estate investing full time. </p><p><a href="https://www.businessinsider.com/real-estate-investor-buildilng-wealth-properties-rental-income-new-hampshire-2022-2?r=real-estate-wealth-teaser"><strong>A high-school dropout who goes by Matt "The Lumberjack Landlord" bought his first property in 2001 and nearly didn't survive the housing crash of 2008. Today, he owns over 100 units and grosses six figures per month in rental income.</strong></a></p><div type="image" title="matt lumberjack landlord" height="960" width="1280" msid="90854348" hostid="261"></div><p>"If there was a mistake to be made, I did a pretty good job finding it," said 44-year-old real-estate investor Matt, who prefers to go by "The Lumberjack Landlord" for privacy reasons.</p><p>He started buying properties in the early 2000s, and his first investments produced more headaches than income, he said. Then he faced an even greater challenge surviving the housing crash of 2008.</p><p>It took about seven years until he started to earn enough in rental income to cover his own housing costs — and it was year 15 of investing when his real-estate earnings became roughly equivalent to his salary from his software job. </p><p>After two decades of following his buy-and-hold real-estate investing strategy, he now owns 106 units across 36 buildings in New Hampshire.</p><p><a href="https://www.businessinsider.com/real-estate-investing-financial-freedom-former-truck-driver-father-2022-3?r=real-estate-wealth-teaser"><strong>Former truck driver Dion McNeeley didn't have any money to his name and lived paycheck-to-paycheck for years. Over time, he built a 16-unit real estate portfolio in Washington and became financially independent from the rental income he earns.</strong></a>  </p><div type="image" title="dion mcneeley" height="2274" width="3024" msid="90854349" hostid="261"></div><p>"I made it to 40 without ever having $1,000 in the bank," said former marine, cop, and truck driver Dion McNeeley. "My plan was to retire on two pensions, and neither one of them worked out."</p><p>McNeeley turned to real estate and started saving up for an investment property in 2011. At the time, he was making $17 an hour working at a commercial truck driving school. After two years of working overtime, he managed to save up $20,000 to buy an investment property in 2013. </p><p>He continued buying about one property every other year until his income started to "snowball," he said. After nine years of real estate investing, the 51-year-old owns seven properties and 16 units in Washington state, profits six-figures in rental income a year, and considers himself financially free.</p><p><a href="https://www.businessinsider.com/millennial-real-estate-investor-wholesaler-quit-amazon-financial-freedom-wealth-2022-4?r=real-estate-wealth-teaser"><strong>Seattle-based real estate investor and wholesaler Ludomir Wanot built his portfolio with less than $10,000 upfront by buying with his brother and using an FHA loan. Today, he profits more than $500,000 in 2021.</strong></a></p><div type="image" title="ludomir wanot" height="3024" width="4032" msid="90854350" hostid="261"></div><p>"From a very young age, I knew that money could give me options, and I wanted more options in my life," said Ludomir Wanot, who was raised by a single mother who struggled financially. "So I started thinking about how to earn more money." When he was in high school, "I found online that 90% of all millionaires became so through owning real estate." From that point on, he decided that real estate would one day be his path to wealth.</p><p>He bought his first investment property with his brother in 2016 when he was 24. They found a single-family, fixer-upper on Craigslist, negotiated the seller down to $138,000, and financed it with an FHA loan. They put down a little less than $10,000 and split the upfront costs, meaning they each paid less than $5,000.</p><p>Wanot, now 30, earns most of his money from wholesaling, but profits about $50,000 each year in rents from his portfolio of 13 units located throughout central and western Washington.</p><p><a href="https://www.businessinsider.com/real-estate-investor-financial-independence-wealth-boston-buying-property-home-2022-6?r=real-estate-wealth-teaser"><strong>33-year-old Dana Bull built a 22-unit portfolio in Massachusetts in 5 years. She scaled up so quickly by boosting her income, living frugally, and finding great deals.</strong></a></p><div type="image" title="dana bull" height="1200" width="1599" msid="94501371" hostid="261" sizebytes="127546"></div><p>Between 2014 and 2019, Massachusetts-based investor Dana Bull acquired 22 units across seven multi-family properties.</p><p>Scaling up her portfolio in such a short time frame required "a lot of hustle and making sacrifices," Bull told Insider. But now, at 33 years old, Bull is financially independent thanks to her real estate investments. "I was heads down, either working, hanging out with friends, sleeping, or eating. I didn't waste any time." </p><p>Bull breaks down the real estate business into three phases: <a href="https://www.businessinsider.com/real-estate-investor-financially-free-investing-strategy-process-buying-property-2022-7">acquisition, stabilization, and optimization</a>.</p><p>She spent most of her time in the acquisition phase. After all, finding the right investment property in the right area is critical. When figuring out where to invest, the most important factor to consider is: Do people rent in the area? </p><p>"Look at communities where people are actually renting, because you need renters," emphasized Bull. "You need tenants. They are the lifeblood of your business. They're the ones that are paying for everything."</p><p><a href="https://www.businessinsider.com/state-trooper-using-real-estate-investing-financial-independence-retire-early-2022-8?r=real-estate-wealth-teaser"><strong>Former construction worker Mike Newton went from less than $1,000 in savings to building a 10-unit rental portfolio. He worked overtime at his day job and 'house hacked' to afford his first property.</strong></a></p><div type="image" title="mike newton" height="676" width="900" msid="94501373" hostid="261" sizebytes="80952"></div><p>After deciding he wanted to invest in property, Mike Newton took two immediate steps: He shopped around for a mortgage lender and he started saving for a down payment. </p><p>He saved about $30,000 in cash in just six months. </p><p>"I picked up every overtime shift that I could," said Newton, whose base salary as a Washington State Trooper was $60,000 at the time. "They can never get enough people to cover all the overtime shifts, so I made about $30,000 in overtime in less than a six-month period." He estimates that he was working 90-hour weeks during that time period in 2018.</p><p>He closed on a $450,000 duplex outside of Seattle in November 2018 and moved into one of the units. The other unit was already filled with a tenant, meaning he immediately started earning $1,600 a month in rental income, he said. Plus, a childhood friend moved into one of the three bedrooms in Newton's half of the duplex and paid $500 a month in rent. </p><p>He expanded his portfolio by investing in a more affordable area: Gary, Indiana.</p><p>Newton currently owns six properties in Gary, plus a single-family home in Chicago. He also still has his duplex near Seattle, where he resides. He still house hacks and pays next to nothing in housing each month.</p>

How to build wealth from real estate investing, according to 9 couples and individuals who have done it

<p><div type="image" title="Ryan Serhant" height="3266" width="4355" msid="77494645" hostid="261"></div></p><ul class="summary-list"><li>Ryan Serhant is the star of Bravo's "Million Dollar Listing New York," and is one of New York City's top-performing <keyword id="6354553" type="COMPANY" weightage="60" keywordseo="real-estate">real estate</keyword> brokers. </li><li>He leads a team of more than 60 agents and staffers, responsible for selling over $1.6 billion worth of real estate in the last two years alone. </li><li>Serhant is no stranger to sales, having had his own show on Bravo in addition to authoring two books and launching an online sales course in 2019. </li></ul><p>Reaching your professional goals in the midst of a global pandemic isn't easy, and the struggle to be productive can be a challenge for employees across industries even in times of normalcy. </p><p>But there are tricks to staying ahead, according to Ryan Serhant. </p><p>Now a top New York City agent as well as an author and TV personality, Serhant is an original case member of Bravo's "Million Dollar Listing New York," having joined the show in 2010 while still in the early stages of his real estate career. Since then, he's built The Serhant Team, which completed $1.4 billion in deals in 2019 alone. It's ranked among the top-producing teams in New York. </p><p>No stranger to troubling times, Serhant started his career at the height of the financial crisis in 2008. "I started when Lehman filed for bankruptcy and it was the greatest thing I could've done because it was boot camp," Serhant said. "You learn so much more, it was a great learning experience. When things are tough and slower, you want to jump in. It's a great time to learn."</p><p>Serhant told Business Insider that even in challenging times, professionals can take concrete steps to launch or make meaningful progress in their careers. </p><p>Industry newcomers today are even at an advantage, he said. "You dont want to start when everything's amazing and easy and you're having a hard time when everyone around you is making money. Now is the best time to start in real estate."</p><p>Serhant shared three of his top tips for building or maintaining a career during uncertain times. </p><h2>1. Practice the 'three to five' rule </h2><p>Serhant emphasizes the importance of staying connected to others in such distanced times. Something easy to practice, the rule suggests that you should reach out to three groups of five different people in different ways every day, whether it be via texts, calls, emails, direct messages, or tweets. </p><p>"Reach out to people you wouldn't have otherwise reached out to today," Serhant said. "For me, it's been lawyers, real estate brokers, designers, architects. Just to check in and touch base. Those conversations often lead to conversations about real estate. A lot of business just comes from the 'three to five' rule."</p><h2>2. Be a community leader</h2><p>Speaking to the importance of building a network, Serhant said community leaders are often primed for success, given their ability to build connections and a strong network. </p><p>Through his sales course, Serhant said he heard the story of a woman who started a virtual mothers' group during the pandemic. Now, she's become a community leader for mothers in her small town outside Paris, and she's really been able to connect herself to a group she'd hoped to become a part of pre-pandemic. </p><h2>3. Take advantage of online learning</h2><p>Pointing to the changes and uncertainty in the education industry given the pandemic's impact, Serhant said people are much more willing to learn online these days, which isn't a bad thing. </p><p>Having launched a sales course in August 2019, Serhant said there's been a 20% uptick in course membership as a result of the pandemic and the changed attitudes toward online education. "Online education is a hot topic right now, people are okay with learning online," Serhant said, adding that this applies not just to real estate but in all sales. </p><p>Racecar drivers, dentists, and authors are among the professionals that have signed up for his course, as well as a man who simply wanted to learn to sell himself, with the end goal of finding a girlfriend — a goal Serhant says, thanks to his course, the member achieved. </p>

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