January is National Hobby Month, so if you want to find a new hobby for the new year, now’s the time! One of our favorite hobbies to discuss here at Bay Property Management Group is real estate investing. As such, in this article, we’ll discuss the focus of National Hobby Month and how you can start investing in real estate now.
Contents of This Article:
- What Is National Hobby Month?
- Why is Real Estate a Good Hobby?
- 5 Different Investment Methods to Explore
- How to Get Into Real Estate Investing
- Managing Your Investment Properties
What Is National Hobby Month?
National Hobby Months occurs in January, encouraging Americans to celebrate their favorite hobbies or try new ones in the new year. Whether it’s gardening, painting, hiking, or baking, everyone has hobbies that they enjoy. Some people, like real instate investors, turn their hobbies into projects, businesses, or occupations.
The purpose of National Hobby Month is for enthusiasts to share their interests and hobbies with others. Additionally, it’s an excellent time for those who want to try new hobbies to dive into something new. That said, read along as we go over one of our favorite hobbies–real estate investing! Here’s why it could be a great hobby to get into this year.
Why is Real Estate a Good Hobby?
Don’t get the wrong message–investing in real estate isn’t easy. Buying real estate takes a lot of research, money, and effort. As such, some people would consider it more of a job rather than a hobby.
While investing in real estate is more of a career path than a hobby, it depends on your investment method. For instance, if you’re looking to invest in rental properties, you have to find a suitable property, finance it, repair it, find tenants, and run an entire rental business. However, if you’re an experienced investor, it’s easier to sit back and collect passive income.
Furthermore, if you’re investing with others, the risks are much less than if you invested alone. So, getting a group of partners together to join you for an investment could make it more of a fun hobby rather than a full-time job. Additionally, you don’t have to buy properties to invest in real estate. Instead, you can find crowdfunding platforms or real estate investment trusts (REITs).
Investing is an excellent hobby for several reasons. First, most people assume that real estate investing involves buying real estate and taking out mortgage loans. However, there are more ways to invest than buying properties. Additionally, you don’t have to manage your own properties. Instead, you could hire a property management company in Philadelphia to manage them for you!
So, if you’re looking to make real estate investing your new hobby, here are five different investment methods to explore.
5 Different Investment Methods to Explore
Investing in real estate doesn’t necessarily have to include buying properties. There are several ways to invest in real estate that don’t require purchasing any physical property. However, there are several ways to buy properties and earn passive income from rental tenants. Let’s go over five investment methods to explore if you want to make real estate your new hobby.
- Real Estate Investment Groups
- Flipping Properties
- Rental Property Investing
Real Estate Investment Groups
A real estate investment group (REIG) is a business that focuses most of its efforts and money on real estate. Real estate investment groups earn profits by buying, selling, renovating, and financing properties. Generally, these groups buy sets of multi-unit properties and sell them to investors while taking responsibility for property management.
Real estate investment groups have multiple partners or shareholders, which you can join by networking with other investors. You can start an investment group or find a successful group online that aligns with your goals.
Similar to real estate investment groups are real estate investment trusts (REITs). However, there are a few key differences. For instance, REITs must create financial statements and follow tax laws. On the other hand, REIGs don’t qualify as investment trusts and don’t require any limitations or disclosures.
Investing in real estate investment trusts is another way to get into real estate without buying physical properties. REITs are companies that own and operate income-producing real estate. You can invest in REITs completely passively, either publicly or privately.
Another way to invest in real estate is by fixing and flipping properties that need renovations. You can purchase run-down properties in up-and-coming areas at favorable rates. Then, once you fix and renovate the property, you can sell it for profit.
It’s important to note that flipping real estate takes a lot of time and effort, which could seem like more of a job. However, if you have time to repair the property in your spare time, you could consider it a hobby that eventually earns you a profit.
Rental Property Investing
Investing in rental properties is a lot to take on, and it could take a while before you can earn passive income or turn it into a hobby. However, it can pay off if you play your cards right and contribute your time and effort to efficiently managing rentals.
There are several ways to make money with rental property investing, whether it’s a long-term strategy or short-term rentals. First, however, you have to think about all the steps of owning rentals. For instance, you must find profitable properties, finance them, and manage your properties and tenants.
Finally, crowdfunding is another passive way to dive into the real estate industry. Crowdfunding is a unique investment strategy that allows you to join other investors in funding a new property. This strategy is excellent for those that don’t have the capital or time to invest in a physical property.
Instead, you can contribute money via online fundraising with other investors. Then, you can sit back and watch your investment pay off without finding tenants or managing properties.
How to Get Into Real Estate Investing
Now that we’ve gone over several different methods, you may be wondering how to start investing in real estate. If you need a new hobby for National Hobby Month, here are a few ways to get started in the real estate industry.
- Choose an Investment Method- The first step to making real estate your new pastime is choosing an investment method. Aside from the ideas listed above, there are several ways to dive into the industry and make it your next hobby.
- Save Up for Your Investment- Next, depending on your investment method, you may need a significant amount of capital. For instance, if you’re buying a physical property, you’ll need a substantial down payment. On the other hand, if you’re investing in a REIT, you could start with a smaller amount of capital.
- Connect With Other Investors- A great way to learn more about the real estate industry is by connecting with experienced professionals. For instance, if you’re curious about rental property investing, you may look to an experienced landlord or property manager as a mentor.
Managing Your Investment Properties
National Hobby Month is a great time to jump into a new adventure or investment. However, if you’re looking at buying rental properties, you’ll want to think a step ahead. One way to easily manage your rentals is by hiring comprehensive property management.
Luckily, our dedicated property managers at Bay Property Management Group have plenty of experience managing all types of investment properties. So, whether you need help marketing rentals, finding tenants, maintenance, and more, we can help! So, contact BMG today if you need rental management services in Baltimore, Philadelphia, Northern Virginia, or Washington, DC.