OTHER WAYS TO INVEST IN REAL ESTATE WITHOUT INVOLVING DIRECT PROPERTY OWNERSHIP

 OTHER WAYS TO INVEST IN REAL ESTATE WITHOUT INVOLVING DIRECT PROPERTY OWNERSHIP 


There is this misconception most of the people harbour that real estate investment is only possible by direct property ownership which isn't true. 



Owning property is not the only way to invest in real estate as there are numerous other lucrative options available involving less maintenance and offering steady cash flows.


Ways to invest in real estate without involving direct property ownership:


WHOLESALING

  Wholesaling is a sort of property-flipping process where an investor has to sign a contract to purchase property, which is underpriced. The property is then sold immediately to another investor at a higher rate to earn a profit. Most of the times,  such an investment is made by wholesalers having enough fund to make such investments. They then intend to sell the property as quickly as possible to a homebuyer or house-flipper. However, it is a slightly risky investment that needs a great deal of legal, financial, and real estate proficiency as well as strong connection to buyers and excellent negotiation skills.


ONLINE INVESTMENT PLATFORMS

 There are multiple online real estate investment platforms available that pool investments from numerous investors and invest on their behalf in opportunities that are either too expensive or difficult to invest. Most of these investment

platforms carry restrictions, including

accreditation requirements and high investment risks.


PRIVATE EQUITY FUNDS

 It is a passive kind of investment where investors have to offer only capital and leave duties of investment management to fund managers. But it is still wise investors to have complete knowledge and understanding of returns and implicit risks involved in such investments.


REAL ESTATE MUTUAL FUNDS

 As an investor, you can earn returns on a mutual fund in the form of share appreciation and dividend, based on the performance of investments. Real estate mutual funds can usually invest in real estate stocks, REITs or direct purchases from real estate. Such options can

include commercial real estates like storage units, office buildings, industrial real estate like factories and warehouses, and residential real estates like townhomes, single-family houses, and more.


LAND BANKING

 Often overlooked by investors, land-

banking is a buy-and-hold technique that,

when done correctly and with due

diligence,  is also relatively low-risk. It's a way of making a profit by buying land and selling it at a much higher price to people who hope they can build houses, etc. on it in the future.


REITS

 REIT stands for real estate investment trust and is sometimes called "real estate stock." Essentially, REITs are corporations that own and manage a portfolio of real estate properties and mortgages. Anyone can buy shares in a publicly traded REIT. They offer the benefits of real estate

ownership without the headaches or expense of being a landlord. Investing in some types of REITs also provides the important advantages of liquidity and diversity . Unlike actual real estate property, these shares can be quickly and easily sold. And because you're investing in a portfolio of properties rather than a single building, you face less financial risk.


Before making a final investment, do assess the time scale of each option, risks involved, the money involved, and determine the option that best meets your financial goals and personal preferences.


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