What if I tell you that you can crack down the ultimate Real Estate investment Algorithm and make waves without buying physical properties? Yes!! There could be an influx of your ROI without necessarily buying mortar-and-brick properties.
To thrive in the real estate landscape, you need to position yourself at the cutting edge of the latest ideas. You need an intimate understanding of how things work. Most successful investors leverage on various strategies to get returns on investment and yours should not be an exemption
Therefore, you need to be informed and stay on top of the “profit chain“. Basically, most aspiring investors are erroneously glued to the idea that real estate investment must always be accompanied with the buying of properties. So, what happens when you are either financially unequipped to purchase a property or you are not just willing to go down that lane.
Does that mean that you don’t deserve that juicy, threefold return on investment that those real estate tycoons enjoy? No! It does not!
The good news is; there are various ways to make money in real estate without supposedly owning a property. Join me as I explore 9 of these amazing ways to make money from real estate without buying a property. This is exactly how to invest the smart way.
Table of Contents
1. REITS
Why do some real estate investment experts patronize ETFs and Mutual Funds? Isn’t it obvious that it is primarily because they don’t want to own physical properties? Sure! This same reason is behind why customers invest in REIT.
The advantage of REIT is that it helps you invest without owning physical property. In addition, it also helps you diversify holdings with respect to the nature of real estate investing by each REIT.
Some real estate experts strongly believe that it is safe to double down on investing in REIT for two basic reasons;
- It’s zero levels of correlation with other forms of equities
- Ability to diversify holding
However, there is a word of caution. Gaining mastery over how to invest in REITs is very important. Due to the high level of risk involved in investing in non-traded REITs, it is advised not to throw one’s hat in the ring without a sufficient level of certainty.
2. Invest in companies that are focused on real estate
Some commercial real estate developers, resort operators, timeshare companies … manage real estate without operating a REIT. Note that with this option you have to double down on connecting with companies that manage a real estate while not operating as a REIT.
This option is especially beneficial if you want a greater level of exposure to a particular type of real estate investment.
3. Invest in an exchange-traded fund (ETF)
Basically, EFT is simply bringing stocks or bonds together in a particular fund. There is a slight difference between ETFs, index funds and mutual funds due to equivalent board diversification and over all low cost.
Hence, if you want to join the train of real estate investment without spending a cent on purchasing properties, skyrocket your profit the smart way by investing in ETF. There are loads of ETFs that create exposure to real estate, therefore all you need do is research meticulously and pick the ones that best connect with your investment ideology.
4. Mutual Funds in Real Estate
If you want to feel confident as regards future return on investment you might need to invest in a real estate mutual fund. A typical example of a real estate Mutual Fund is DFREX. Many investors have developed genuine trust for DFREX due to its outstanding track record of success.
The low cost of DFREX and the track record of success associated with it has crafted a surefire goldmine for investors. Apart from DFREX, we also have TIREX. Simply make your research and learn how to invest in the mutual fund you consider appropriate.
5. Online Real Estate investment
Hi! forget about that deceptive online scheme that was just another pain in the ass, this is neither a ponzi scheme nor a dubious get rich quick plot. You can reap the rewards of investing in real estate without buying properties by leveraging the unique power of some companies online.
These are reputable companies that have created a track record of consistent trust with clients from all over the world. You may wonder, how does this work? All the company does is let you invest in real estate while you receive cash flow distributions to recompense your investment effort.
Companies like Realty Mogul and Fundrise are good examples of such companies.
6. Hire a Competent Property Manager
This is a method that helps you own a property and not really undergo the problems of a property owner. To save yourself from the hassles of owning a property like having to receive random mails and calls from tenants or having to visit the apartment for minor repairs, all you need do is hire a proficient property manager.
If you will like to earn from real estate without really owning a property, then this method would work for you. How? You will own property without really going through the troubles of owning a property.
7. Real Estate Note Investments
Do you know that there is a type of investment you can buy without dabbling into buying physical brick-and-mortar buildings? This investment is called Real Estate Notes. Typically, people invest in real estate notes through banks.
Note that investing in Real Estate Notes implies that you buy debt at a price that is way below how much a retail investor will pay in return. Note that investing in Real Estate Notes is not limited to investments with banks, you can also invest with real estate investors.
8. Hard Money Loans
If the other ideas on this list doesn’t seem like something you will love to try. I’ll suggest you try this but with caution. This is something you can only afford to do with someone you really trust. Note that you must be willing to lend some money out.
How does this investment idea work and how do you ransack your ROI (Return on investment)? All you need do is punch out a direct loan to a pro real estate investor and fold your harm and wait to receive your ROI. Your percentage of ROI will depend on your prior agreement with the investor.
9. Channel your investment into home Construction
If you pay meticulous attention to real estate market growth trends over the past 10 years you will realize that a lion share of this growth results from limited housing inventory. Hence, experts are of the opinion that the construction of new buildings will continue to skyrocket over the next few decades.
So how do you take advantage of this? Simply invest in the construction aspect of the real estate industry.
Conclusion
Having to spend hugely on purchasing properties before investing in real estate is now an old tale. There are several other means of earning from real estate without dabbling into purchasing properties.
By looking into the aforementioned ways of investing in real estate without buying properties, you are set to savor the merits of real estate investment and enjoy the beauty of life devoid of financial worries.
You can also read our post on How to start investing in real estate and The Best Strategy for Investing.
