Investing in real estate is a move that many investment and financial experts recommend. Property is usually a pretty good investment because people always need homes and commercial real estate.
Although prices can go down, they typically trend upward. However, if you’re someone who doesn’t like the idea of being a landlord, you might think that investing in real estate isn’t for you. Fortunately, you don’t need to be in charge of maintaining a property or looking after tenants. There are other ways to invest in real estate, without having to be a landlord. Here are some of the options you can consider,
Invest in REITs
A REIT (real estate investment trust) is a type of investment that involves buying trust shares from an investment company. Many REITs are focused on commercial properties, but some trusts include residential mortgages.
If you’re more interested in residential property investment, take a look at DiversyFund reviews to find out about multifamily real estate. It can be a good way to diversify your investments and ensure that your money isn’t all in commercial properties when you’re investing in REITs. With this method, you can invest just a few hundred dollars in real estate.
Real Estate Crowdfunding
Real estate crowdfunding offers you another way to invest in real estate without ever having to handle any properties. Crowdfunding involves multiple people contributing to an investment and then benefiting from that investment based on how much they put in. You can do it by downloading an app and you can often start with just a few dollars when you’re ready to invest. It’s typically pretty low-cost and it doesn’t require a lot of effort, which is great if you don’t want to have to monitor your investments or do a lot of work.
Flip Properties
If you’re happy to get more involved with a property but don’t want to be a landlord, you might consider flipping properties. This usually works out best if you have some handy skills. If you have to pay someone to do any work for you, it might not be worth your time or money.
However, if you can do the work yourself, you can often make a good profit. One thing to keep in mind is that you still have to handle the purchase and sale of the home. And if you don’t manage to sell, you could find yourself becoming an accidental landlord so you’re not losing money.
Own Your Own Home
Of course, one of the best ways to invest in real estate is to buy your own home. It’s a great investment because you have a helpful asset that belongs entirely to you once you’ve paid off your mortgage. It’s a great way to get set up for retirement because you’ll no longer need to worry about rent or mortgage payments. Some people even invest in additional property that they can use for vacations or other purposes.
You don’t have to be a landlord to invest in real estate, there are other options that could suit your investment goals.