How to Invest in Real Estate Without Buying Property

You have been hearing people talk about investing, maybe investing in real estate, as that is supposed to be quite beneficial to an investors bank account.

But what if you are not interested in buying a building, even as an investment opportunity? The thought of owning a physical building that needs to be managed at some level or other turns you completely off to the whole real estate investment idea, regardless how many sing its praises.

What would you say, if I told you there is a way to invest in real estate without buying any property? Would that be of interest to you?

If it is, then read on for 5 suggestions on how to invest in real estate without purchasing any property.

1. REITs

One way to invest in real estate without buying any property is through REITs.

A REIT is a real estate investment trust. It represents a company that owns or finances real estate that earns an income.

REITs have many commercial real estate properties, ranging from warehouses, hospitals, shopping malls, office and apartment buildings.

These companies invest in real estate and allot the earnings to their shareholders.

When you invest in REITs you will have a portfolio of properties, not just a single one.

There are different types of REITs available for investing, depending on the level of risk, the amount and the length of time you want to invest in real estate. These include publicly traded REITs, public non-traded REITs and private REITs.

With every investment opportunity, do your research to find out which options best suits your investing needs.

2. ETFs

An ETF is an exchange-traded fund. It is similar to a mutual fund, except it is traded on  exchange throughout the day and price changes rapidly as it is bought and sold on the market.

According to my research, ETFs are liquid, which means you are not chained to a long-term investment contract. There are many options available to suit your investing needs. Plus, it is supposed to be a great way to make a profit investing in real estate without buying a property.

They have also become very popular of late, because investors can own a diverse set of stock very quickly and at a low cost. In addition, they provide specified access to different areas of the stock market.

So, the only thing left to do is find out which ETFs are best to invest at this moment.

3. Invest in Real Estate Companies

Another way to invest in real estate without buying any actual properties is to invest in the companies that focus on real estate.

These companies can range from construction companies, real estate agencies, hotels, home builders, timeshare companies etc.

Buy stock in publicly traded companies. It is a high risk, high return sort of endeavour, but you can sell at any time.

4. Real Estate Crowdfunding

An easy way to get started in the world of real estate investment is through real estate crowdfunding.

There are a number of different websites that make getting started in investing in real estate rather easier by offering a real estate crowdfunding option.

What it basically means is that you merge your money with other investors in order to make investing possible.

The investing opportunities range from residential to commercial properties, although each investment has its own requirements. Some of them are only available to accredited investors, while others offer the opportunity to invest for as little as $500.

You have the option to invest in property portfolios or single property. And there are good chances for a high return on some investments.

A few websites that offer real estate crowdfunding are: Fundrise, EquityMultiple, Realty Mogul and PeerStreet.

5. Property Manager

Let’s say all of the above options are not really your cup of tea and you have this amazing opportunity to buy a rental building (commercial or residential), but you do not have the time to manage it.

Enter the competent property manager! He or she will manage the building for you, so that you can focus on other matters.

The hired property manager will take over the duties and care necessary to keep your investment lucrative while you stay in the background, like a silent partner.

The only thing you have to do is check those references to make sure the potential property manager is up to the task and then check in periodically to verify everything is running smoothly.

Final Thoughts

Investing in real estate can be scary and mind-boggling to say the least. It is always good to know that one has options and there is more to it than buying a building and praying to the real estate gods that it’ll work out for the best.

Investing in real estate without buying any property can take away some of the stress brought on by having to manage an actual, physical building. Keep in mind that meticulous research is still needed in order to avoid making an investment mistake that could cost you dearly, even when the purchase of an actual building is not involved.

The 5 options I have listed above are meant to provide you with starter points to focus and further your interest and research into the possibilities of real estate investment.