Real Estate Investment without Physical Property – Part 2

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The previous post discusses four options of real estate investment, for which you do not have to buy the physical property. They are real estate ETFs, REITs, real estate mutual funds, and company that focuses on real estate. These options of investment allow you to have property investment without you having to buy one in physical way.

More Options of Real Estate Investment

In his post on Forbes, Jeff Rose also notes some other options of real estate investment without physical ownership. The following are more options to consider:

Home Builders

Instead of building the house on your way, investing in home builder companies can be a smart choice. Given the significant growth of real estate market in the last several years, construction of new homes and housing complexes is still a promising business in the coming several years. Scope of the business includes construction of new neighborhoods and rehabilitation of the old houses.

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The potential for growth is particularly evident in developing areas. A number of large home builders show good performance in the last few years. They include Lennar (LEN), LGI Homes (LGIH), Pulte Homes (PHM), and D.R Horton (DHI). Of course, there are many other options, depending upon the target area.

Real Estate Notes

This type of real estate investment is available through bank. This also eliminates the need to deal with brick-and-mortar building. However, you can also deal with individual investors that purchase and renovate property buildings. You do not manage the business. Instead, you buy the notes and get some extra income from your investment.

Of course, you need to deal with this type of investment with care. Make sure to select whom you are dealing with in a careful way. You need to know how your money is managed, whether the investment is through a bank or a real estate investor.

Online Real Estate Investment

This may sound unusual, but technology provides you the answer. You can participate in real estate fundraising without being involved directly. You can invest in commercial residents, private housing, or commercial building by contributing cash flow. Your fund is used by the recipient company to fund the property business.

This type of investment actually works as REITs do. The difference is that fundraising season is offered by an online platform that serves as a third party between you and the recipient company. In return, you get profits in the form of dividends, or any other forms, depending upon the agreements. Websites to watch include Fundraise and Realty Mogul.

Hire A Property Manager

In this case, you actually manage the business, but a property manager helps you in running the company. You can choose to run a business in property construction, property rehabilitation and renovation, property rentals, and many more.

You are actually a landlord, in this type of real estate investment, but do not deal with the hard work. Of course, the success of your business depends upon the property manager you hire. Therefore, make sure that you really know whom you are working with. Of the 7 options of investment discussed above, which one fits your style and preferences?


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