September 15th, 2020
Real Estate Investing for Beginners
When people hear the phrase ‘real estate investing’, many think this means becoming a landlord or having to develop a property. However, investing in real estate has become much easier to invest in over the years and helps diversify an investor’s portfolio.
Let’s dive into some of the basics of real estate investing.
For a beginner, the idea of owning and managing a property may intimidate you. Or perhaps you lack the capital to buy a home of your own. But fear not, there are still other options out there for you. Here are three ways you can join this prosperous market in a more hands-off manner:
- Purchase Real Estate Investment Trusts (REITs): Enjoy the benefits of investing real estate without the hassle of managing a physical property. Investing in REITs is similar to investing in mutual funds. Some are publicly traded in exchanges in the same manner as stocks while others are not (It is recommended that new investors purchase publicly traded REITs). The REIT pays dividends out to its stockholders and is considered liquid.
- Join a Real Estate Investment Group: Experience a more distant approach to real estate that still creates annual revenue and while allowing you to enjoy the benefits of property appreciation. These groups invest in rental properties such as apartment buildings or office spaces and invite investors to join the company by purchasing one or multiple units of the property.
- Try Real Estate Crowdfunding: Using online real estate investing platforms, purchase a share of large commercial properties and finance projects without being responsible for maintaining the facilities or managing tenants.