Is there such a thing as a lazy investment? Find out what Robert Kiyosaki means in his book “Lazy Way to Invest in Real Estate.”
Lest we misunderstand, “lazy” in this book refers to the opposite of the common approach or traditional requirements for property investment, particularly the need for huge capital, actual ownership, or laborious landlord-type work that comes to mind when talking about real estate.
In his book, Kiyosaki outlines methods for investing in the real estate market. As its name implies, it is a guide demonstrating how to invest in a profitable industry without using more traditional methods. Conventional business practices include buying REITs, selling homes quickly, and taking on rental properties.
Kiyosaki has long promoted letting your money work for you instead of forcing you to work for it. That is consistent with the book’s overall message. He implies that you can start making money in real estate by assuming the banker’s position.
However, no investment will prosper without work; even passive income sources need thorough research, due diligence, time, and effort to flourish.
So, let’s get down to business, explore the book, and gain some money-making insights about real estate investment.
Lazy Ways to Invest in Real Estate – Investing with Little Money
1. House Hacking
House hacking is the laziest approach to investing in real estate. A fantastic option to be able to hack or manage earning additional income is to rent out your home. The simplest way to save money while owning a property is by renting out apartments in multi-unit complexes like triplexes or fourplexes.
You can rent those extra rooms or basements in premium cities for extra money.
2. Live-In-Then-Rent
If you wish to own your rental property, you can invest in real estate using the live-in-then-rent technique. Finding a cheap, unattractive rental home with a low monthly payment is the goal of this technique.
Like house hacking, low-down-payment owner-occupant loans don’t require you to reside next door to your tenants to take advantage of them. Make a tiny rental house your home for a few years or months, and you’ll be there. Then, purchase a new home once you have paid off the first one.
3. Live-In House Flip
The live-in house flip approach is another low-cost real estate tactic you can apply. For this real estate investment plan, you’ll need to locate an affordable house in disrepair that you may sell after fixing it up.
You can determine the timeline of how fast you’re flipping the home, depending on how much time you have for flipping and the available budget.
4. Seller Financing
With seller financing, you can finance any property without going through a bank or other financial institution and make payments directly to the seller.
Suppose the seller is willing to provide seller financing. In that case, you will have much more latitude to negotiate the mortgage rate with the seller and change the monthly mortgage payment to fit your budget and capacity.
5. Airbnb
Airbnb allows you to rent your entire home or a portion of it for the short term. It can also be a cheap entry point into real estate investing.
This tactic might be like house hacking, where you make money from your house or a portion of it, but you may also develop it into a legitimate money-making project or even a full-fledged company that brings in part- or full-time income.
Lazy Ways to Invest in Real Estate – Without Buying Property
6. Real Estate Crowdfunding
Real estate crowdfunding is a relatively new form of investment in which individual investors participate to become private equity holders in various real estate properties. Each investor contributes a percentage of the total cost of a real estate project that they otherwise wouldn’t be able to afford.
The income can be regular payouts from properties like office complexes or apartment buildings with monthly rents; it can also come from a share of the final sale price of a property, such as hotels or malls that were constructed or renovated. Basically, it is adding real estate to your portfolio as a way of earning passive income without the responsibilities of being a landlord.
Some popular platforms include:
- Fundrise – if you’re in the U.S., Fundrise is the place to start. You only need $10 to set up your portfolio. Fundrise lets you invest in private commercial and residential properties to build your passive income portfolio.
- Mintos – Mintos is a European crowdfunding platform for real estate, personal loans, and more. When you sign up using my link, you get a bonus of 0.5% of your invested amount in the first 90 days. Read our full Mintos review for more details on the platform and how to get started.
- EstateGuru – is a European real estate crowdfunding platform for property-backed loans provided to businesses. Use my EstateGuru link for a 0.5% bonus on the first three months’ investments. Here is our full EstateGuru review to check how to earn 11%+ per year passively.
7. Real Estate Investment Trusts (REITs)
Real Estate Investment Trusts (REITs) companies own and usually operate successful properties like apartments, office buildings, resorts, hotels, warehouses, and malls.
REIT investors benefit from the income generated through property rents and leases, which are paid out as dividends.
8. Real Estate ETFs
Exchange Traded Funds (ETFs) enable investors to buy into large diversified real estate portfolios in the form of securities through broker companies that invest in REITs.
Real estate ETFs give you a far more reasonable way to invest in real estate because you won’t have to spend much money purchasing and maintaining your properties. Some of the best real estate ETFs in the market include Vanguard Real Estate ETF (VNQ), Charles Schwab U.S. REIT ETF (SCHH), Real Estate Select Sector SPDR Fund (XLRE), and Real Estate Select Sector SPDR Fund (XLRE).
9. Real Estate Mutual Funds
Like ETFs, real estate mutual funds enable investors to acquire shares in properties that give respectable dividends over time. Investors can also buy shares of mutual funds that hold one or more REITs in their portfolios.
Some best-performing real estate mutual funds include Cohen & Steers Instl Realty Shares, Baron Real Estate Income Fund, and Fidelity Real Estate Investment Port.
10. Master Leasing
Using the master leasing strategy, you rent a property and obtain the owner’s consent to sublease bedrooms, units, or space to other renters.
A so-called option to purchase may also be subject to negotiation, which offers you the right to purchase the property for a predetermined amount during a specific timeframe.
Lazy Ways to Invest in Real Estate – Land Investment Strategies for Real Estate
11. Farmland Investment
Farmland investing entails purchasing agricultural property to be used for various purposes. You can use the land to profit from the crops provided by your agricultural endeavors.
12. Flipping Land
Flipping land is like flipping houses, except you purchase vacant land for a low cost, improve it, and then resell it for a greater price.
13. Buy and Hold
A long-term real estate investment strategy called “buy and hold” means purchasing and keeping a piece of land for yourself. You can rent some areas to make money, enabling you to pay off the mortgage.
14. Purchase and Sale Using Owner Financing
A land property may also be purchased and sold via owner financing. Thanks to it, you’ll have a better choice than making your regular mortgage payment.
For instance, a traditional mortgage could call for a 15–25% down payment, but with owner financing, you can negotiate a lesser down payment with the seller. The vendor will then provide you the option of financing, with interest rates varying from seller to seller, so you can pay over an agreed-upon time frame.
15. Buy and Lease
The buy-and-lease technique, where you purchase a property and then lease it, is arguably the most popular real estate investing strategy. A good piece of land is purchased and leased to people who may want to use it for various purposes, such as farming, livestock raising, or storage.
Is “The Lazy Way to Invest in Real Estate” a Scam or Legit?
The fact that you are lazy in this situation does not imply that you lack understanding about investments. You must do your due diligence, look for funding (even from other sources), and follow up to obtain a profitable investment.
The points raised in the book are legit, describing tried-and-tested methods of making money through real estate. What are the most useful takeaways? You don’t have to be a landlord to invest in real estate. You can start investing in real estate even without buying a single house.
Frequently Asked Questions (FAQs) – Lazy Way To Invest in Real Estate
What Is the Best Strategy to Invest in Real Estate?
The best real estate investment property is a rental because of its consistent occupancy and profitability. Everyone needs a home to stay in, and rentals securely provide owners with a regular income they can rely on.
What Is the Most Profitable Investment in Real Estate?
The possibility for larger cash flow makes a commercial property one of the best real estate investments. Commercial real estate may provide investors with greater income possibilities, longer lease terms, and lower vacancy rates than other real estate types.
What Can I Invest in Instead of Real Estate?
You can invest in stocks, bonds, mutual funds, ETFs, or cryptocurrencies by opening a brokerage account with eToro, and Binance, among other popular investment companies, or with robo-advisors such as M1 Finance, Personal Capital, and Acorns. These companies and platforms can help you build your portfolio and advise you on buying the best stocks.
You can also choose to be an entrepreneur—for instance, set up a business in transportation, pressure washing, or e-commerce. For novel passive investments, you can also try royalty investing.
Can I Begin Investing in Real Estate with No Money?
If you choose one of the abovementioned strategies, you can invest in real estate with little to no money. If buyers cannot obtain a loan from financial institutions, they can approach the sellers to finance their real estate. As the best-tested method of investing in real estate without any money, seller financing is the most desirable option if you can find one.
Conclusion – Lazy Way To Invest in Real Estate
Some real estate investment strategies mentioned above may be perfect for you, especially if you lack a huge capital or prefer passive income.
Again, note that there really is no such thing as a lazy investment, as earning money by investing still requires careful planning, research, attention, time, and effort. Be clear on your own financial goals, recognize your investment style, and identify your investment preferences to determine the best real estate investing strategy for you.
“The Lazy Way to Invest in Real Estate” could be a handy guide to get you started. Keep learning, adopting the best strategies for yourself, and developing your investment smarts!
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Marjolein is a financial consultant who has built over €4,000 monthly passive income and saves over 70% of her income. Read Radicals’ inspiring story, from stuck in the 9-to-5 to loving life. Feel free to send Radical a message at the bottom of this page