Buying real estate is no longer just about finding a place to call home. For more than ten years, Hunter Estess has been using real estate as an investment opportunity, using it to create enough passive income to achieve financial independence. Although the real estate market has an abundance of opportunities for anyone to make large gains, buying and owning real estate is more complicated than investing in stocks and bonds. Here are four ways you can invest in real estate.
1. Rental properties are the most basic way to invest in real estate. When you purchase a piece of property and rent it out to a tenant, you become the landlord, responsible for paying the mortgage, taxes, and cost of maintaining the property.
2. Real estate investment groups work like small mutual funds for rental properties. A company will buy or build a set of apartment buildings and then allow others to buy them through the company.
3. Real estate traders buy properties with the sole purpose of holding them for a short amount of time, usually no more than four months, in the hope of selling them for a profit.
4. A real estate investment trust is created when investors’ money is used by a corporation to purchase and operate income properties. They are bought and sold like other stocks on major exchanges.
These are only a few of the ways you can invest in real estate. There is a lot of potential with real estate, but you have to remember that it is an assured gain. As with any investment you have to make careful choices and consider the costs and benefits before diving in. After years of investing, Hunter Estess has learned how to identify the best opportunities for investing.