Five Ways to Dive Into Real Estate Investing
What types of real estate investments exist are there? What may be best for your particular situation? There is a range of commitment in the various types of real estate investments. Hannah and Kris break it down in this video.
REITS are Real Estate Investment Trusts. They are traded on the stock exchange and are typically a passive way of investing in real estate. You can have diversivation without being actively involved in the day to day real estate. There are challenges though. Performance of the REIT is dependent on the specific manager and fees can be off-setting.
Online Real Estate Investment Platforms are more involved than a REIT, and are not publicly traded. They are pooled funds most times where you are purchasing an asset with a group of people. The manager is the one making the decisions about the asset. This is also a passive investment.
Investing in rental properties, flipping properties and renting rooms are much more hands-on types of investment strategies. You may need a property manager for rentals to manage the property.
Flipping properties are more complicated and more suited to people who can do this full time. It's very hands-on and requires constant oversight, attention to detail and heavy management.
Renting rooms such as through Airbnb is another method of making money. Of course you may also live in the property so that can be problematic if you have a guest who isn't so wonderful. But this is also another way to create wealth from real estate if you don't have the capital to purchase separate properties.