The real estate market has been a striving business sector since it’s birth. In many countries, prices of houses have rose up to more than 10 percent on the line. Not only the coastal cities and tourist spots, the real estate market is making high moves in their game plan in the major cities of many countries.
With all these good profits, it is pretty normal to think about investing in real estate. Well, to help with that, here are 9 ways to invest in real estate successfully:
1. Invest in real estate ETFs:
ETF stands for Exchange Trade Fund. The term refers to an assembly of stocks or bonds gathered in a single fund. The idea of index funds and mutual funds are similar to ETFs. Moreover, these low-cost funds derive from the same broad diversification.
Example of successful ETFs can be found everywhere, including Vanguard’s VNQ, which is an exchange-trade fund that makes investments in stocks that are released by real estate investment trusts purchasing commercial buildings, hotels etc. properties.
2. Invest in real estate mutual funds:
AS said before, mutual funds and exchange trade funds are almost of the same kind. Thus, you can invest in both and earn a smart profit. Mutual funds like DFREX, allows you feel safe and confident with its low cost and track record policy. TIREX, another real estate mutual fund, has an asset of 1.0 billion US dollar and is also very low on fees.
3. Invest in REITs:
For the same reason people who like to invest in ETFs and mutual funds, also invest in REITs. REITs lets you invest in real estate without making an issue about holding a physical property. But it is essential to choose the REITs that are traded publicly and not the ones that are non-traded. The non-traded REITs have less liquidity, very high fees and have no value of transparency, which are essentials to build high investment risks.
4. Invest in real estate focused companies:
You can find many agencies and real estate companies that operate not in a way that will term them as REITs. But you need to work deep to find them and they will reward you with lower dividends to pay than regular REITs. These companies, which have a focus on real estate only, including resort operators, hotels, timeshare companies and commercial real estate developers. But check with yourself before buying stocks from a specific company. This option can prove to be smart way of investment if you do some research beforehand.
5. Invest in home construction:
If you look up to the sources in which real estate business have bloomed in the last few decades, you can see most of them will point at investments in limited housing inventories. For this reason, its not unwise to think that building of new homes will result in major profit in the next few decades as well. Beside top homebuilders like LGI Homes (LGIH), Lennar (LEN), D.R. Horton (DHI) and Pulte Homes (PHM), there are also other home construction companies you should keep an eye out for.
6. Hire a property manager:
There are many options to invest in real estate without buying properties. One such strategy is renting real estate and later on hire a property manager to handle all the heavy works when you buy one. Hiring a property manager will also allow you to manage your rental properties even staying afar. The manager will limit the distance between you and the tenants and thus will offer you the benefits of being a landlord.
7. Invest in real estate notes:
These are some specific notes that will offer you chances of doing investments if you are interested in real estate but not ready to deal with buildings. While operating with a bank in dealing with some real estate notes, you are actually buying debt at prices that are below the lines comparing what a retail investor would usually have to pay.
8. Hard money loans:
If you have some cash on you, then you might as well try lending some hard money loans. This will give you serious exposure into the real estate market without letting you deal with being a landlord. These are loans that are directly given to real estate investors
9. Invest in real estate online:
There are many rising new companies that are operating through online platforms. For example, Fundrise and Realty Mogul are 2 of them. Sites like these will let you invest in residential real estate and advantages of getting cash flow distribution in return.