Owning and buying real estate is a strategy that can be satisfying and lucrative. Here are some ways in which investors can make money in real estate.
Real Estate Investment Groups (REIGs) – This is ideal for people who want to own rental real estate without the inconvenience of running it. It only takes a capital cushion and access to financing to start. REIGs is a much more hands-off approach to real estate that still provides income and appreciation. These are basically like small mutual funds that invest in rental properties.
Become a Landlord – This is for people with DIY and renovation skills and those who have the patience to manage Tenants. In this kind of investment, you need substantial capital to cover vacant months and finance up-front maintenance costs. Rental properties can cater to regular income while maximizing available capital through leverage. Furthermore, many associated expenses are tax-deductible, and any losses can make up gains in other investments.
Real Estate Investment Trusts (REITs)- This is ideal for investors who want portfolio exposure to real estate without the traditional real estate transaction. Investment capital is all you need to get started in this kind of investment. A REIT is created when a corporation uses investors’ money to operate income or purchase properties. It is essentially dividend-paying stocks that contain commercial real estate properties with cash-producing, long-term leases.