Not everyone wants to be part of actually owning real estate property. There are however ways you can still invest in real estate without the hustle of owning property. We will explore some of the ways below.
Real investment trusts (REITs)
These are companies that produce income by either owning real-estate or financing it whether in commercial or residential real estate. There are different kinds of REITs available including equity REITs and mortgage REITs. If you decide to buy into the company, you will get dividends; do your research before investing in a particular one so that you know which one will offer you the best returns.
Real estate mutual funds.
Mutual funds are investments that are pooled together and overseen by an investment manager. You can diversify your portfolio by having the mutual fund as well as ownership of the real estate property. They offer the choice of income or growth-oriented mutual funds. Inasmuch as they offer diversification, they are still vulnerable to risks and you need to prepare for this.
Unlike flipping where you buy the property before you start the renovation process, in wholesaling, you scout the market for someone wants to sell their property and get a prospective buyer and sell it to them at a profit. You do not do the renovation, neither do you own the property. The best part about it is that your money does not go into the operation at all, but it will require some negotiation skills from you to be able to sell a house that might be at market rate, at a slightly higher margin so that you can make some profit.
Online investment platforms.
There are platforms for real estate investors, and they are very popular among those who do not have venture capital. It works like crowd-funding and is a good investment especially for those with some money to spare.
Real estate service companies
You can buy shares or stocks in companies that are in the real estate sector, like the publicly listed construction companies. You become a shareholder and earn dividends off your shares.
Work in the industry.
You can join the real estate sector by working in it as a professional. There are so many professions in the real estate sector including appraisers, evaluators, real estate agents, realtors among others. This will give you an opportunity to invest in yourself as an individual by learning the ropes of the industry, and the day you are ready to become an investor you’ll find it very easy because you have a full understanding of everything that goes on.
You do not have to buy property to be a part of the real estate industry. There are many investment vehicles that are open for those who wish to invest in the sector, as well as so many opportunities to enter the sector as a professional. You can also partner with other people so that you are able to buy real estate at an affordable price.