How to Invest in Real Estate
A home is usually the first thing that comes to mind when you consider real estate investment. Of course, that’s true. But you have more alternatives that have different levels of maintenance. Also, they aren’t all physical assets.
Real estate investment trusts, or REITs, is one that’s not a physical asset. They’re businesses, also referred to as trusts, that own commercial properties like office buildings, hotels, and apartments. Some REITs, like stocks, are traded on a stock exchange, while others aren’t.
The type of REIT you purchase can have a major impact on how much risk you take on. New investors should start with publicly-traded REITs that they can buy in brokerage firms. It’s low maintenance, so you can safely entrust your real estate investment funds.
2) Rental Properties
Investing in rental properties means that you have to be a landlord, so you should be ready and comfortable with that role if you want to choose this path. You’ll be in charge of things like paying the mortgage and insurance, as well as finding tenants and resolving any issues that arise.
There are two ways to make money as a landlord: collecting rent and increasing the property value so you can sell it at a profit when the time is right. You can use your real estate investment fund to either buy with cash or finance a rental asset. Both ways have their own advantages.
A real estate investment group (REIG) is an organization that devotes the majority of its time and resources to real estate investments by buying, financing, selling, and renovating properties. REIGs have no specific limits in their activities, which is beneficial to their marketing.
If you want to own a rental property without the trouble of fulfilling the responsibilities of a landlord, this might just be your pick. To discover groups of interest, search the internet for REIGs or connect with investors via professional social networking sites like LinkedIn.