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How to Invest in Real Estate without Owning Property

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Source: Maritza Perez

Many of us are guilty of watching hours of Fixer Upper, Property Brothers, and Million Dollar Listing. Investing in Real Estate is the primary method of acquiring wealth, and many of us are eager to become participants in the market. But can you be an investor if you don’t have much cash?

The simple answer is yes.

There are steps you can take to enter the real estate world without worrying about supplying a down payment, proving steady income, and managing tenants.

One of the easiest ways of doing this is by investing in a financial asset such as a Real Estate Investment Trust (REIT). A REIT is a company that owns real property, manages it, and makes money from it. If you own a share of a REIT, you will also gain a portion of the income from their properties.

Another worthwhile investment is a real estate Exchange Trade Fund (ETF). ETFs can hold a bundle of different REITs. One good example of this is iShares Global REIT ETF (REET). If you invest in REET, you will be investing in REITs that operate internationally. So if the US market is affected, it may be balanced by the economies of other countries.

Don’t forget that if you are currently a homeowner, then congratulations, you are already a participant in the market. This may be your first investment, so look for future opportunities on making money from your home. This includes renting out rooms in your home, leasing the house out and buying a new one, or even turning it into an AirBnb.

Whether you invest in a financial asset, or simply own your own home, you are a participant in the Real Estate Market. Can you think of other ways to invest in Real Estate? Give me a call!

 

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