In the world of investing, a lot of people invest in different schemes using different method. Some believe in doing business, others believe in stocks and bonds, and others in real estate. I will be looking at real estate investment in the post and I will be sharing with you the ways to invest in real estate.
Investing in Real Estate means investing in a property or land, building, underground right and air space. This investment is one of the stable investment method generally because it is physical unlike bonds and shares. If you are interested in investing in real estate, there are ways to invest and in this post I will be showing the ways to invest in real estate.
Traditional Method
This requires being involved physically either by going out to look for a building, or property, or getting a broker or an agent to help you get a property. In getting this means you want to be close to your property and monitor them properly. In investing in the traditional method of real estate investment, you need to have an attorney, broker (If you want one), real estate agent, manager and contractors. You need to worry about the growth in terms of getting people, services and suits.
REITs (Real Estate Investment Trust)
REITs is a way to invest in real estate mostly publicly owned real estates like mall, clubs and so on without literarily owning them, instead you buy stocks. A REIT most make 75% of its income from real estate as well as invest 75% of their income into real estate, also a REIT must distribute 90% of their taxable income as dividend yearly.
Online Real Estate Crowd-funding
This is relatively new and has been in the space of farms, buildings, and other property online. With this, people come to pull funds together to own a building after which they start getting passive income from doing it. It can be seen as an online real estate mutual fund. With REITs, you invest in the company owning the buildings but with online real estate crowd funding, the investor invests in the real building and or properties.
House Flipping
House flipping is buying a property at lower price, renovate the property and sell it at a higher price unlike the traditional real estate method where houses are acquired and leased or rented out. With house flipping, the real estate investor make much money while buying and selling.
If you want to invest in real estates, I can say that you know a thing or two already. To me, I prefer the traditional method and REIT. You could share your choice of investment with me in the comment section and why you prefer it.