How To Create Wealth Investing in Real Estate In Suffolk, VA

Originally published August 2021.

Updated April 20, 2023.

Did you know there are a variety of ways to build wealth through real estate investments? While many property owners choose rental properties, there are other options!

If you're wondering how to create wealth investing in real estate but don't want to go the traditional route of buying and selling property, there are other options available to you. Here are some creative ways to make money through real estate investing—with insights from the best property management Suffolk offers!

Traditional Real Estate Investing vs. Creative Strategies

"Traditional" real estate investing is probably what you already have in mind when considering this wealth-building strategy. For example, one of the most common traditional investing methods is buy-and-hold properties operated as rental homes. Through this method, property owners find tenants, keep properties in good condition, and collect monthly rent checks.

You might also be familiar with fix-and-flip investments or "house-flipping." Whether you've seen it on T.V. or tried this strategy yourself, buying a rundown property to renovate and then resell at a higher price is another traditional way to benefit from real estate investment properties.

However, real estate isn't out of reach if you don't love the idea of owning and operating rentals or managing house-flipping projects. From house-hacking to wholesaling, investors can get involved with passive real estate investing options and never own a property!

Creative Real Estate Strategies to Consider

So, what are the best ways to invest with minimal hands-on involvement with properties? Choose from house-hacking, wholesaling, or REITs.

House-Hacking Helps Cover the Mortgage

You might have heard about house-hacking but wondered what it really means. With this investment strategy, a property owner buys a multi-unit property (typically a duplex or small apartment building). Then, they live in one unit while renting out the other units to tenants.

While this strategy requires some hands-on work to maintain your unit plus your renter's unit, you're building equity and generating monthly rental income. If you're able to charge enough rent and keep quality tenants in the other unit, you can offset your mortgage payment and other expenses for the entire property.

Note that this method can be convenient when responding to tenant requests or maintenance emergencies, but it can also be challenging to live next door to your renters. So make sure you're prepared for close contact and choose good neighbors!

Wholesaling Doesn't Require Property Ownership

Wholesaling can be another excellent way to build a passive stream of income without ever owning an investment property. However, this strategy does require involvement with buyers and sellers as a go-between during the purchasing process.

As a wholesaler, a real estate investor buys a contract on a house from a motivated seller. However, the investor never takes ownership. Instead, they work quickly to find new buyers and then transfer the contract to the buyers for the final sale of the residential property.

To make money from this real estate investing strategy, investors sell the contract at a higher price than the original sale price. They keep the difference, while the original sale amount goes to the seller.

Wholesaling can be a great way to make money through real estate. Still, it requires time and experience to find motivated sellers and buyers quickly to avoid putting any money down on a property.

Real Estate Investment Trusts (REITs) are Truly Passive

If you prefer not to deal with physical properties at all, investing in a Real Estate Investment Trust is the way to go!

Through this strategy, investors buy shares in a REIT. The REIT managers own and operate properties, then pay dividends to investors as shareholders. While this can be one of the most convenient ways to invest in real estate, it also tends to generate lower returns than rental properties. Investors also have no control over managing the properties and optimizing returns.

However, if you're looking for a way to benefit from real estate investments without owning or managing properties, this could be the ideal strategy to get started as an investor.

Maximize Returns With Rental Properties

One reason rental properties are a common choice for income-producing real estate is because of the returns! Property owners have more control over expenses, renters, rental rates, and how they reach ROI and long-term investment goals.

It's also a simpler strategy to build more wealth as you get the hang of it! Simply adding another rental property to your portfolio helps you make more money.

However, rental properties do require a lot of work to hit goals and optimize returns. If you like the idea of better profits (but you don't like the idea of putting the work in), hiring a Suffolk property management company is the best solution!

Build a Real Estate Portfolio With a Suffolk Property Management Company!

Starting your journey as a successful real estate investor requires good properties, good tenants, and the best strategies for consistent long-term income. If you're considering rental property investments, Osprey Property Management is here to help!

As experienced property managers in the Suffolk area, we help real estate investors find the right properties and then manage every aspect of rental properties and tenant relationships. Reach out soon to learn more about our residential property management services.

Get more investment insights when downloading a free copy of “How to Invest In Real Estate: A Guide!”