The median price for a home in the Denver metro area sat at $569,804 in January 2023.
Real estate is one of the best investments you can make if you want to start earning a regular income. The returns for real estate are generally very good, but many people don't have enough money to buy a rental property. This may not be an issue, however, as different options make it possible for people with less capital to make real estate investments.
In this guide, we'll discuss how much money you need to invest in Denver real estate. Keep reading for more.
Investing in real estate isn't viable for everyone due to how much a standard property costs. REITs (real estate investment trusts) are an ideal solution to this problem.
A REIT is a security that investors can trade like stocks, and they make up portions of a property. You can often buy a REIT for somewhere between $,1000 and $25,000, and you'll own a percentage of the property it belongs to.
You can find REITs for different types of properties and in different locations, so they're suitable for any investor. A portion of the income will go towards property management fees, and the rest of the profits are distributed to the REIT owners based on how much each of them owns. These are a great way for people with less money to get on the property ladder.
If you own REITs, you essentially own shares of a property, rather than any physical property. REIGs (real estate investment groups) are a way to buy individual units in a larger condo or apartment building through an operating company. This company takes a portion of the rent from each unit in the building and manages all of them.
You may be able to invest in a REIG for as little as around $5,000 - $50,000. This won't get you an entire unit, but the operating company can pool the money from multiple investors who will then share a unit.
One of the main benefits of investing in a REIT or REIG is that everything is managed for you. Property management isn't easy, so having an operating company take care of this from the start is very helpful.
For anyone who can afford to do so, investing in a rental property is a great option. You'll own the property yourself, so the income will go to you rather than being split between multiple people.
It's worth noting that this is the most time-consuming and expensive option — typically costing upwards of $100,000. In this case, you can manage the property yourself, but it can still be a good idea to work with a property management company. They'll handle all the difficult tasks that come with being a landlord so you can relax and collect a regular income.
Managing Denver Real Estate
You might be interested in the Denver real estate market, and with the options available, you can make a reasonable decision about how to enter the property market. If your investing strategy involves owning entire properties, you have the potential to make a lot of income.
Managing a property on your own can be very challenging, and things become more difficult if you invest in multiple. A property management company can provide all the help you need to ensure your properties are handled correctly.
Laureate LTD is a leading property management company in Denver. Take a look at our property management page to see more about how we can help you on your real estate journey.