REAL ESTATE INVESTING

This is Real Estate Investing 



If you are a first-time investor, you don't have to be an expert with a portfolio of real estate investments. There are plenty of other options for newbies.

People who prefer a hands-off approach, investing in Real Estate Mutual Funds, ETFs, Real Estate Investment Trusts (REITs), and Crowdfunded Real Estate provides the opportunity to reap rewards without the work and for much smaller investments. All it takes to get started is a little bit of money, some research, and a desire to build wealth.

Real estate is not the only way to start investing and create wealth without having to purchase property and still can keep you out of the day-to-day grind of property management while still offering the potential for a strong return on investment.

 


1.      Mutual funds.

These are low-risk investments that pool money from different investors into one fund. The fund manager then decides how to invest the money based on market trends and individual company performance. Mutual funds offer big returns but can go down in value as well as up.

Start with mutual funds that invest in real estate through REITs if you're new to the investing game because they are considered less risky than direct investment in property.

 

2.     Real Estate Investment Trusts (REITs)

 

REITs are similar to mutual funds in that they allow investors to pool their money together to purchase a variety of assets. Unlike mutual funds, REITs invest specifically in real estate assets while also paying out dividends like a stock would. REITs offer an excellent way for investors with little cash on hand to get into the market without making a lot of sacrifices. But if you're looking to put down roots in one place, crowdfunding could be your answer.

 

3.     Crowdfunded real estate.

Crowdfunded real estate is the act of pooling capital from small investors and using it to fund larger-scale commercial or residential building projects. This can include both large-scale apartment buildings and small multi-family developments. Crowdfunded real estate lets investors put as little as $1,000 down to reap the same benefits as someone who puts down $20,000 or more, while still getting the full tax benefits of owning an investment property.

 

4.     Real estate exchange-traded funds (ETFs)

Offer investors exposure to real estate without buying property or taking on the daily management associated with REITs.


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