Real estate is a wide market and it has a range of different opportunities. However, not all opportunities work for everyone. So, it is important to know which investment option works best for you. Below are the top three real estate investment options that you need to know, so that you can decide if any of these are the right fit for you.
Real Estate Investment Trusts
Popularly known as REITs, these are companies that own and manage commercial real estate properties. They also handle real estate debt and tend to raise money through private and public equity. Moreover, these REITs give an opportunity for investors to have a piece of the real estate market. They can do this without directly investing into any properties. This convenience of being part of the market, especially when it is on the upswing, is exciting for many investors. This is due to the fact that they do not have to own and directly manage properties. Most likely, this convenience is why 70% of American investors use REITs to invest in this market.
Crowdfunding has become a popular way to raise money for any venture. If you are new to this form of funding, it means that many people with a similar interest come together to fund a particular project, and the benefits or returns are pro-rated and shared among the investors. The biggest advantage with crowdfunding is that many people get to take part in the same venture, and the investment is also affordable. More importantly, the risks are fewer, since the project is shared by many people. Crowdfunding has become a popular form of real estate investment, because people can be part owners of a property, reap the benefits, and share the risks.
Buying a Property Directly
If you are a hands-on person who likes to directly buy and sell properties, then that is the best investment option for you. This option is lucrative, because you can keep all the profits to yourself. However, the downside might be that you will have to bear the loss, as well.
Thus, these are the top three real estate investment options for you. Think about pursuing a particular niche.