The 3 ways to invest in real estate (explained in a simple way) To invest in real estate, each person's risk profile plays a very important role. The opinions expressed by Entrepreneur employees are personal. Given the global economic uncertainty, investment in real estate has always proven to be an active refuge, so, the expert Moshe Drizin make some recommendations for investing in the sector. To invest in real estate, each person's risk profile plays a very important role. For example, if these assets are seen as risk coverage because low returns are observed in the rest of the portfolio assets then we expect a greater flow of investments towards real estate, said Moshe Drizin, a real estate investor. Here are three ways to invest in real estate. Income The rent of a real estate allows obtaining benefits in a smaller term than a sale. However, you should keep in mind that you have to make an initial investment to maintain the property and have more value at the time of rent. The location of the property is very important to determine the rental price. A property that is well connected and close to public transport can obtain more benefits and will be easier to rent than one that does not. An increasingly popular option is to use the property through collaborative systems such as Airbnb. Moshe Drizin, said that it is a good system and it is feasible if what you want is to rent a room of the property, since renting it completely includes some maintenance expenses that people do not contemplate. "Sometimes you end up spending more than what you receive because you have to have a person who is serving that property, have it clean day by day, have the adjustments," said the expert. Remodeling Another option is to buy a property used to remodel it and sell it later. The remodeling projects increase the value of homes, so that the final closing price is higher than if only the property is sold in its current state, explained Moshe Drizin. In addition, he added that, although the gain can be very variable, as there are some almost complete remodeling, or in very dynamic areas, the value of a property could increase between 5 and 7 percent. Sale If you want immediate liquidity, selling a property is not an option, since a sale could take between six months and a year. The investment in real estate purchase is rather medium to long term, especially if you consider that you must wait for the property to generate surplus value. To obtain the greatest benefits you should consider that the closing price is adjusted after the negotiation, said Moshe Drizin. Other important factors are the term or time of stay on offer, the method of payment or amortization of value of the property, the guarantees of tenure rights, the expected surplus value, the tolerance to the risk of claims or contingencies and the metropolitan environment of the property, The analyst concluded.