The real estate market goes through its ups and downs every year. That’s due to the fact that the mortgage crisis took place not too long ago. In fact, more and more people are becoming risk-aware when it comes to investing into the real estate market.
Additionally, investors have found lots of other ways to invest in the market without actually buying the property, making it easier to avoid any possible consequences. Therefore, if investing in the real estate market without legally purchasing the properties sounds like something that you would be interested in, you have come to the right place!
However, before testing out the waters and finding the way to invest in the real estate market, make sure to do thorough research on the current situation on the market and current property values. That is something that Washington Brown can definitely help you with!
1.Real Estate Investment Trusts (REIT)
REITs have definitely made investing in the real estate market faster and more efficient. They are allowing individuals to buy shares in commercial real estate portfolios who receive their income from a variety of different properties. For example, healthcare facilities, apartment complexes, data centers, hotels, cell towers, etc.
The thing that has made REITs so popular throughout the 1960s up until today is the fact that they allow you to earn a share of commercial real estate ownership income without having to actually go out and buy the property!
2. Real Estate Mutual Funds
Another great option for an investment into the real estate market is purchasing a real estate mutual fund, along with other individual investors, of course.
Both REITs and real estate mutual funds have become investors’ favorite options due to the fact that they allow individuals with limited capital access to still test their luck with the real estate market.
Additionally, real estate mutual funds are investors’ beloved because they mitigate risk, which can be a great choice if you are just getting into the market!
3. Real Estate Company
On the other hand, lots of people tend to overlook REITs and real estate mutual funds in favor of investing directly into real estate companies.
While this may sound more compelling, you should be aware of the fact that, even if you find the perfect real estate company that you would like to invest in (because due to their lack of advertising, they can be somewhat hard to find), their dividends are usually quite lower than the ones that you would be offered with by REITs.
4. Exchange-Traded Funds (EFTs)
Simply put, an exchange-traded fund is a fund that owns underlying assets such as bonds, oil futures, shares of stock, foreign currencies, etc.) and then divides the ownership of those assets into shares.
So, if you invest into an EFT, you are basically investing in a fund that already invests in real estate investment trusts!