First, the bad news. Real estate investment is not like HGTV.

Flip or Flop is fun to watch on television, but house-flipping requires immense know-how and physical labor to create a profit in reality. And Zillow-surfing mansions is not the same as finding properties you can afford.

The good news? There’s a real estate investment strategy out there for almost anyone. Here’s how to pick a strategy that actually works for you—not just one that looks cool on TV.

Your Perfect Real Estate Investment Strategy Depends On Your Lifestyle

Wholesaling, where investors act as middlemen between bargain property sellers and buyers while profiting from commissions, may sound appealing because of limited risk exposure. It also only tends to work out for investors who make a full-time job out of research and networking.

Landlording may sound easier. That is, until your third time in one month trekking out to fix your tenants’ leaky plumbing.

Don’t pick a real estate investment strategy that will make you miserable. If you hate it, you’ll have a hard time getting good at it.

Do Your Research

How do you know which real estate investment strategy will succeed and which one will flop? The answer is research and lots of it.

Interested in buying a vacation rental property in Florida? You’ll have to learn more about each city’s market. Trying to flip a house? You had better understand the changes you’ll need to make and the realistic cost and timeline for each project.

Research can help you understand your risk exposure for different projects. Home pricing trends, for example, can help you recognize when a property is a bargain. Research isn’t glamorous, but it can make the crucial difference between losing or making money. Knowing the state of the market you’re going to enter is also crucial. For example, now is not really the best time to invest in vacation rentals or timeshares, because of the pandemic. If you’re in this position, you should also research on your exit strategies and find out the best way to cancel a timeshare.

Don’t Be Afraid to Start Small

Real estate investment, just like all other investments, entails risk. That means you should be relatively financially stable before you start investing. You shouldn’t invest more than you can afford to lose.

Does that mean you can only get into house-flipping or rental property investment if you can afford a second home? Not necessarily.

Getting started in real estate investment can be as simple as renting out a room in your own home. You could also buy a property, live in it while renovating it, and resell it, essentially house-flipping your own home. These strategies not only keep costs low but also open up residential financing opportunities.

Don’t Ignore Crowdfunding and REITs

Most people hear the term “real estate investment” and imagine buying a piece of property. But you don’t need to make a huge commitment to participate in REITs or crowdfunding.

A Real Estate Investment Trust (REIT) buys income-generating properties and distributes profits through shareholder dividends. Much like publicly traded stocks, you can buy and sell REIT shares through a brokerage. Real estate crowdfunding connects people trying to buy income-generating properties with a large number of funders.

Picking the right REIT or crowdfunding proposal still requires research. But if you’re trying to avoid the hassle, risk, or upfront cost of buying property, they’re great investment options.

Don’t Get Rich Quick—Make Profit Right

No true real estate investment strategy is a get-rich-quick scheme. Anyone telling you otherwise is probably trying to rip you off.

The flip side of that reality, however, is the happy fact that you can make sustainable income by investing in real estate. The key is to start taking baby steps—like research—right away.

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