3 Ways to Invest in Real Estate

Investing in real estate is a smart idea, especially considering how popular it is now and how much it can build your wealth. But if you still haven’t decided the way to invest in real estate, I’m here to prove that investing yourself is the best choice.

Starting with naming 3 main ways to invest in real estate:

1. Renting a property.

2. Selling a property.

3. Investing in REIT.

Investing in REITs (Real Estate Investment Trust) means buying shares in REIT mutual fund or REIT exchange-traded fund, so basically you together with a group of other investors, invest your money in the company which later decides which real estate to buy or sell. Investors later get paid monthly with a divided check and not only you are getting the only ¼ of the income but you never know when you are actually getting it since you are not able to sell or rent properties when you need the money. Sometimes it can get even worse, REITs are quite risky, the success of them depends on the prices on the market and they can even under-perform.

All of that brings me to my main point - why is it better to invest yourself.

Let’s say you currently own a single-family home, most of the time tenants rent it for one or more years, which automatically means a steady, monthly income for one or more years. And the best part of it is that you aren’t sharing it with anybody.

The same is with Multifamily properties, and it’s even better - you can never go wrong with it, not only you have guaranteed income every month, but it literally never stops. Multifamily properties have multiple tenants and even if 2 of the units are vacant, you still have others growing your bank account. And if it will be needed, you can freely live in one of the units to save up YOUR living costs.

The most important part of real estate investing is playing it smart, passive investing might sound exciting to you but always consider every aspect of it and then decide where to invest in.