In the decade since the Great Recession, housing prices have bounced back remarkably quickly, and many markets in the United States are boasting huge growth and skyrocketing prices.
While this can pose a challenge for people who are looking to purchase a property, it is a boon to the housing industry, which is seeing major profits in growth markets like Tennessee and Texas.
The good news is, you don’t need to be a tycoon to cash in on the real estate market: here are three ways ordinary people can take advantage of the nation’s housing boom.
Become a Realtor
One of the most popular ways of breaking into the real estate market is also one of the easiest. Becoming a realtor is surprisingly straightforward; in most states, all you need to do is pass a real estate course, take the state-mandated licensing exam, and find a sponsoring brokerage that can set you up with the resources you need to start making deals.
Realtors are uniquely positioned to benefit from the real estate boom because they can make a profit buying as well as selling. When you work as a realtor, you don’t need to worry about falling prices or market crashes down the road: because you can turn a profit from sales as well as purchases, you are relatively insulated against market downturns.
Investing in real estate may seem like an avenue only open to the mega-rich, but the truth is that there are plenty of investment tools available that can be accessed by ordinary people. Real estate investment groups (REIGs) and real estate investment trusts (REITs) both offer ways for you to benefit from growing house markets without having to purchase entire properties yourself.
If you look at the latest developments in the Texas markets you will note that many of the fastest-growing communities in America are in the Austin-Round Rock to Dallas-Fort Worth corridor, an area where a booming tech industry and a diversifying economy are attracting skilled workers at an extraordinary rate.
Even if you don’t live in this part of the country, REIGs or REITs are relatively hands-off investment options that can secure significant returns, and represent an ideal opportunity for people who want to grow their investment capital in a reasonably safe but comparatively high-growth way.
Get Involved in Real Estate Trading
Better known as “house flipping,” real estate is a hands-on investment strategy that involves purchasing property in areas where housing prices are increasing, fixing it up, and putting it back on the market to be sold at a profit.
While this does require a bit more technical expertise (both in terms of renovation and market-savvy), it is a great way to realize relatively quick profits and to break into the market with comparatively modest capital.
Working for a wage will never make you rich, and while getting involved in real estate comes with risks, it also offers huge rewards to those who are successful.
If you’re tired of reading stories about people who walked away from their day job and became millionaires off of a few smart deals and a bit of hard work and want to see if you have what it takes to compete in one of the nation’s most dynamic markets, there is no time like the present to get your realtor’s license, start an investment portfolio, or buy a run-down house and get to work on it.