Here Are New Ways To Invest In Real Estates

Buying one’s own home has always been a great American dream. Homeownership is associated with a feeling of pride. It gives one a chance to register his name on the property ladder. However, buying a property to live in it or to earn a rental income has not remained the only way of investing in real estate.

There are many new ways of real estate investment with some not asking you to buy a piece of property at all. Yes, you can be a real estate investor without being the owner of a tangible piece of land or property. We will learn about these new and innovative ways of investing in real estate.

Invest in REITs

REIT is an acronym that stands for Real Estate Investment Trust. If you are desirous of real estate investment but don’t like the idea of searching for the right property or repaying the lender for a long time to come, you can invest in real estate investment trusts. These trusts own income-producing real estate and use other people’s money for buying more real estate. You can invest in shares of a REIT and receive income from it in the form of dividends. This method of real estate investing is an indirect one as you are not directly involved with the sale and purchase of the real estate. Also, you can invest in a REIT with a small amount of money without taking a loan from a bank. You can expect an attractive return on investment through the expertise of managers of such a REIT.

Invest in Companies Focussed on Real Estate

You have a great chance to become a real estate investor without having to buy real estate the traditional route. There are lots of companies focussed on real estate that accept money from people as their investors. These companies do not operate formally as REITs and so it may be a little bit harder to find good quality and reliable real estate focussed companies. You get the advantage of capital growth investment by parking your money with such a real estate focussed company. You can buy stock in a company that operates commercial real estate or any other type of real estate depending upon your liking. This method of real estate investing is a good one if you can do research about the company and check out its track record to ensure good returns on your investment.

Wholesale Houses

You are desirous of investing in real estate but find good properties worth buying too expensive to afford them. If you do not have enough money saved in your bank account, you cannot hope to become a real estate investor as lenders require money upfront in the form of a down payment before giving a mortgage for the purchase of the property. What you can do is to get into the wholesaling of houses. Your job is to find out sellers ready to sell their homes at less than market value and then quickly sell the deal to an investor pocketing your commission in the process.

Buying a home by taking a mortgage or investing in apartment buildings are old methods of real estate investing. Today there are new and innovative ways of real estate investing like REITs, ETFs, and real estate mutual funds. You can even become a wholesaler of houses.