January is National Hobby Month! So, whether you want to find a new hobby or continue practicing existing hobbies, now’s the time to do so. One of our favorite hobbies here is real estate investing, so read along as we tell you more about it!
Contents of This Article:
- What Is National Hobby Month?
- Is Real Estate Investing a Good Hobby?
- 3 Different Ways to Invest in Real Estate
- How to Get Started With Your Investment
- Manage Your Investment Property With PPM
What Is National Hobby Month?
Every January, National Hobby Month encourages Americans to practice their favorite hobbies or venture into new ones in the new year. Whether you enjoy gardening, baking, painting, or reading, everyone has hobbies that bring them joy. Some people, like investors, transform their hobbies into meaningful projects, businesses, or even full-fledged occupations.
The purpose of National Hobby Month is for enthusiasts to share their passions and interests with others. Additionally, it serves as an opportune time for those who want to try new hobbies to dive into something new. So, read along as we review one of our favorite hobbies–real estate investing!
Is Real Estate Investing a Good Hobby?
Real estate investing is an excellent hobby. However, don’t get the wrong idea–investing in real estate is not an easy hobby to get into. After all, buying real estate takes a ton of due diligence. You need to perform diligent research, save up enough money, and put time and effort into ensuring a successful investment. As such, many people consider it more of a full-time job rather than just a hobby.
That said, while investing in real estate is more of a career path than a hobby, it can depend on your investment method. For instance, if you’re just getting started with a rental property investment, you’ll need to research a profitable property, finance it, plan for repairs, find tenants, and run an entire business. However, if you’re a more experienced investor, you may find it easier to sit back and collect passive income from previous investments.
Additionally, it’s important to understand the risks and rewards of investing in real estate alone. Some investors prefer to get a group of partners together to invest in one large property or project. That way, you can lighten the workload and start with less capital. This can make it more of a fun hobby rather than a full-time job. However, that means you share the profits amongst your partners.
It’s also important to note that you don’t have to buy properties to invest in real estate. Instead, you can find crowdfunding platforms or real estate investment trusts (REITs) to invest in, which can lead to more passive income rather than actively managing properties.
Ultimately, investing in real estate is a great hobby for various reasons. While most people assume that real estate investing involves buying properties, there are plenty of ways to invest in real estate without taking out loans or managing rentals. Next, we’ll go over five different methods to explore.
3 Different Ways to Invest in Real Estate
You don’t necessarily have to buy properties to invest in real estate. Instead, there are plenty of ways to invest in real estate that don’t require physically purchasing or managing properties. However, there are also great investment methods that include buying properties and earning passive income from tenants. If you want to make real estate your next hobby for National Hobby Month, check out these different ways to invest.
- Real Estate Crowdfunding
- Rental Property Investing
- Fix-and-Flip Projects
Real Estate Crowdfunding
Real estate crowdfunding is a passive way to make your mark in the real estate industry. It involves a unique strategy that allows you to join other investors in funding a new property. That said, this strategy is great for those who don’t have a large amount of capital or the time to invest in a physical property. Instead, you can join in with other investors and contribute money via online fundraising. Then, sit back and relax while you watch your investment pay off without managing properties or dealing with tenants.
Rental Property Investing
As you can imagine, investing in rental properties is a lot to take on, and it can take some time to see initial profits. However, the benefits are often worth the work. If you put in the necessary time and effort into efficiently managing rental properties, you can eventually earn passive income, especially if you hire a professional management team.
Fix-and-Flip Projects
Another great way to get involved in real estate investing is by fixing and flipping properties. This method involves buying run-down properties in up-and-coming areas at favorable rates. Then, you fix and renovate the property and eventually sell it for a profit. It sounds easier said than done, but if you’re willing to put in the time and effort, you could eventually make it a hobby that also earns you a profit!
How to Get Started With Your Investment
If you’re thinking about diving into real estate investing for National Hobby Month, it’s important to have a starting point. Now that you know there are several different methods to explore, here are a few tips to help you get started.
- Research Investment Methods- The first step in getting started in real estate investing is doing some simple research. You’ll want to look into the different types of investments and choose a method that works best with your goals. Aside from the ideas above, there are plenty of ways to dive into the real estate industry and make it your next hobby.
- Save Up for Your Investment- Next, depending on your chosen method, you may need a significant amount of capital. For instance, if you plan on buying a rental property, you’ll need a large down payment and plan for monthly mortgage payments. However, if you want to invest in a REIT, you can start with less capital.
- Network With Other Professionals- A great way to learn more about real estate investing is by connecting and networking with experienced industry professionals. For example, if you’re interested in rental property investing, you may look to an experienced landlord or property manager as a mentor or someone to go to for advice.
Manage Your Investment Property With PPM
National Hobby Month is an excellent time to jump into a new adventure or find a new favorite pastime. However, if you plan on making real estate investing your next hobby, it’s crucial to understand the steps and processes involved. After all, it can be a ton of work that turns from a hobby to a full-time job. One way to take some of the work off your plate is by hiring professional property management.
Professional Property Management of Northern Virginia can help you ensure your rental properties are well taken care of 24/7. Our team of expert property managers can help you market rentals, find tenants, perform maintenance, and more. So, contact PPM today to learn how we can help your rental business!
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