Finding unique ways to invest your money is very important. While most people invest a portion of their assets in the public stock markets, it would also be a good idea to find other ways to invest to diversify your total investment portfolio. One type of investment that can provide you with great long-term returns on your investment is real estate. Unfortunately, owning investment real estate can be time consuming, stressful, and capital intensive. For those that would like to invest in real estate but are wary of actually owning real estate assets, there are three great ways to invest in the industry without ever having to worry about owning or managing a property.
Publicly Traded Real Estate Companies:
One of the best ways that you can invest in the real estate market is to invest in publicly traded real estate companies. There are dozens of real estate companies including REITs, real estate developers, and property management and brokerage firms that are publicly traded. These companies can provide you with a great long-term investment return, regular dividends, and other investor benefits. Furthermore, you will never have to worry about owning properties directly. Instead, you can enjoy the investment returns and leave all of the hard work to the professionals that lead these publicly traded companies.
Real Estate Mutual Fund:
Another way that you can invest in the real estate market is by investing in a real estate mutual fund. Today there are several actively managed real estate mutual funds that will provide you with an even more conservative and diversified investment option. These funds will invest in a wide variety of different companies in the industry including those that own, develop, and manage real estate investment properties. The funds tend to increase in value over time along with improvements in the overall real estate market. You can also expect to receive regular dividends to provide you with instant cash flow and investment returns.
Micro Investing and Lending:
For those that are looking to invest in more specific real estate projects, there are also a variety of micro investing and lending platforms available today. With a micro-investing website, you will be able to invest a specific amount of money towards the purchase, renovation, and management of a property. While you will own a small share of the property and project, it will be very limited and you will have no management responsibilities or controls. With these investments you will earn a preferred return on investment. If you are interested in providing debt, there are also micro lending websites that are geared to providing loans to real estate investors.
Edward Schinik has been with the Investment Manager since 2009.