01
BLOGS
ALL BLOGS
July 30th, 2018

5 Ways To Invest In Real Estate Without Buying Property

Not everyone is cut out to be a landlord, but even if you’re not prepared to handle renters and middle-of-the-night emergency phone calls, you can still benefit from the power of real estate investing. There are a number of ways to invest in real estate without purchasing a property to flip it. If you want to make money in real estate, here are a few ideas of how to invest your cash.

Invest In Home Construction

New home construction has been on the rise for the past year as fewer existing homes are put up for sale. Investing in the construction niche of real estate could allow you to benefit from the spike in new neighborhoods. Some of the larger construction companies to follow are Pulte Homes, Lennar, LGI Homes, and D.R. Horton.

Hire A Property Manager

It’s true. You don’t have to buy property to invest in real estate, but if you want to explore the waters, bring a property manager onto your team. You buy the property and make any changes and the property manager will fill the space, be the point of contact for renters, and handle the maintenance of the property. Depending on your location and the type of property you own, a property manager will receive 8 to 10 percent of the gross rent as payment.

Invest In Real Estate Notes

Skip the brick and mortar investment and go straight to real estate notes. You’ll make your investment through a bank or individual investor buying debt at a much lower cost than a retail investor. Do your due diligence and research the situation before putting your cash into the notes.

Invest In Real Estate Focused Companies

A number of companies are involved in real estate management and are not traditional REITs. While these companies may pay a lower dividend, you can research each company and decide which is best for your investment portfolio. Some industries to consider are resort operators, hotels, commercial real estate developers, and Realtors. Research the company to find historical data on their past projects and current financials, but buying stock in one of these companies can offer a great return on investment.

Invest In Real Estate Online

There are a number of companies online that allow you to get involved in real estate without owning property. Invest in commercial or residential real estate through platforms like Fundrise and RealtyShares and receive cash flow distributions in return. Your money is merged with funds from other investors and could be used to buy apartment buildings, commercial real estate, or residential property.

Forbes reports Fundrise returned an average of 11.4 percent on invested dollars in 2017 net of fees after all.

Investing in real estate comes in a number of avenues, so don’t rule it out because you don’t want to buy a physical building. Use our tips to take advantage of a booming real estate market even if you’re not up for buying and flipping or becoming a landlord.