How To Invest In Real Estate

Posted on December 8, 2022 by

Real estate is one of the most significant investment opportunities in America. If you think owning a home or property will be your future, investing in real estate sounds like a good idea. But technically, investing can mean many different things, and there are plenty of ways to invest in real estate that don’t have anything to do with buying properties for yourself.

One of our favorite influencers for this is Jake Leicht.

Jake has done tons of flips in the real estate marketer and is a great resource. He even runs The Flip Secrets that shows people how to do the same thing that he does.

Jake Leicht is definitely a great role model in this space.

How To Invest In Real Estate

1. Real Estate Investment Trusts (REITs)

How To Invest In Real Estate #1 – REITs or Real Estate Investment Trusts are stocks that represent ownership of a real estate portfolio. A REIT is listed on a stock exchange, and the price of the shares fluctuates based on market demand. If you think owning a home or property will be your future, investing in real estate sounds like a good idea. The very first thing you should do is to buy properties for yourself, and then we will talk about investment later.

2. Real Estate Exchange Traded Funds (ETF)
REITs are a form of ETF. Although they are listed on the stock market, there is no actual property purchase involved, which makes them a lot easier to be understood by those that don’t invest in real estate. Usually, an investment will be made through a bank or some other financial institution, but REITs are generally bought from a brokerage company. An ETF is like a mutual fund, although you have to pay more than what you would have to pay for an actual mutual fund because it also trades in assets like REITs (which it represents).

3. Real Estate Crowdfunding

Crowdfunding can be a very effective way to start investing in real estate. Many people think this is not a good idea because they believe they need help to do it. The truth is that crowdfunding allows you to invest in projects managed by experts, so even if you need more money for an investment like this, there is a great chance you’ll still be able to make some money from it.

4. Real Estate Loans

How To Invest In Real Estate #4 – Investors invest in mortgages by buying loans from banks or mortgage companies. Banks and mortgage companies purchase these loans and sell them off to investors, such as pension or hedge funds.

5. Equity Investment

Equity investments mean you put money into a project, and then, instead of earning interest, you will make a part of the profits. If you want to invest in real estate, this is the best option because it allows you to make good money on the deal.

6. Real Estate Syndication
Syndication means that a property owner will give their property to a real estate brokerage company, which will then resell the property to investors. The property owner does not have ownership in the investment, which is how most syndications work. Still, some syndication structures do include an equity position in real estate. In this case, the investor gets more of the profit, and it becomes possible for the real estate broker to take out more equity than they put in.

You can get more information here if you like.

Importance of Investing in Real Estate.

1. The US real estate market is booming. You can be the next Donald Trump or Ray Nagin with the right resources and see your investment grow.

2. Real estate is a passive investment because you can always take profits by investing and selling.

3. In the long run, making a lot of money, even with small amounts, will be possible because the real estate market never ages. It only grows in value over time and at an exponential rate.

4. One of the main reasons people are investing in real estate is that the economy isn’t doing well, and the value of stocks has fallen. People who have invested in real estate believe it’s better than stocks.

5. Investing in real estate will give you a feeling of satisfaction and pride because you helped build your future home, which is priceless. It’s about investing for the long term to see some good results.

Investing in Real Estate is not only good for your pocket but also beneficial to your psyche. Owning a house or property gives you a sense of security, safety, and freedom. If you don’t own any property, you will always be limited by your location and the rent you pay for your apartment or home. You can never feel free and safe unless you own property because no one can evict you from anywhere.