Investing in real estate can be very beneficial but getting started in real estate investments, even getting a real estate license can require a large amount of capital. However, even if you do not have hundreds and thousands of dollars at hand, you can still invest in real estate without buying property. How?
Read on to know the answer.
Invest in a Real Estate Investment Trust
The first choice is to invest in a real estate investment trust which is also known as REIT, and it is a company that owns and manages real estate related assets. There are several rules that REITs have to follow (which are outside the scope of this article) but, briefly explained, REITs have to follow the rules defined by the Security and Exchange Commission.
Other than being businesses that own real estate, REITs are companies that provide a cash flow to their investors. Investing in a Real Estate Investment Trust with a dividend reinvestment can help you grow your portfolio until you reach a stage where you can purchase properties yourself, or if you want to, you can continue to invest in real estate portfolios.
Invest in a Real Estate Focused Company
Most of the companies that own and monitor real estate are not considered as a Real Estate Investment Trust. This is because the stocks of such businesses pay a much lower dividend than a Real Estate Investment Trust, but the companies have the privilege to reinvest to expand.
However, traditional real estate companies are also available for investments. It is important to keep in mind that you have to do lots of research before investing in such businesses and companies. Investing heavily in one industry or stock may open you up to portfolio concentration risk.
Invest in a Real Estate Mutual Fund
Diversification is one of the most difficult hurdles to invest in, in real estate. As an investor, it is quite easy to find a variety of investments but real estate happens to be a bit different. A single asset in real estate can cost up to six hellish figures. Investors who want to get diversification in real estate, they can turn to Real Estate Mutual Funds, EFTs or Index Funds.
Invest in Home Construction
The last choice is to go into investing in home construction. As you know, real estate is not only about buying or selling existing assets. It is also about building properties which is why a huge industry under the title of homebuilders exists. However, you might need to know that this industry can fluctuate with the economy. So think again before investing.
Executive Homes Realty Inc., Brokerage
Executive Homes Realty INC., is the best realtor in Mississauga, Canada. What sets this brokerage apart from the rest is that it consists of hard-working and extremely friendly individuals bent on supporting their clients in the best way possible. And if you are a real estate agent looking for a brokerage to associate yourself with, they are the best one for you.