How You Can Invest in the Real Estate Market Without Having to Buy, Lease or Sell a Single Property

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Many people see and understand the value of investing in real estate for long term overall growth, as well as the equivalent of dividend payments in the form of rent from tenants.

However many do not know that they could be investing money in the real estate market without having to find a property, negotiate a sale or long term lease agreement, rent it out or renovate and flip it.

Most people think that to invest in property they must have a lot of money, great connections and a passion for real estate and making deals.

Yet nothing could be further from the truth.

In fact you can get started investing in real estate for very little money, essentially no connections and without even caring about real estate any more then the fact that it is one of the safest and best returns on investment.

But how?

How can you invest in the housing market without going out and buying properties.

Enter REITS.

REITS or a REIT stands for Real Estate Investment Trust and is one of the ways that you can start to invest in real estate starting with very little money. You can do it from home and yes you don’t ever need to even go and see a single property for yourself.

You see the way a Real Estate Investment Trust is setup is it is a company which is already investing capital into real estate projects and they will let you invest your money with them.

It is actually an investment vehicle which operates in the exact same way as a regular stock in a company, or an exchange traded fund (ETF).

All you need to do is find a REIT that you see as undervalued and invest by buying shares in the trust company. The Real Estate Investment Trust then invests you money in properties and different real estate projects that they are working on.

When the real estate market increases in value, which it often does, hence the saying “safe as houses” – you profit alongside the trust.

It is a great way to dip your toe in the real estate market without exposing yourself to too much risk. It is also a fantastic way of diversifying your portfolio so you can now have a portion of your assets in housing which is generally a very safe bet.

What’s more certain companies will have specific projects that they are working on like big shopping malls, massive condominiums or specific businesses built on real estate. If one of these goes especially well expect to see your share value increase exponentially and all the while your investment is backed up by real property making it very safe indeed.

While of course a housing bubble can burst like we say back in the 2007-2008 period, generally real estate is a good investment. Plus, even had you been heavily invested in real estate or had stocks in REITs at that time, provided you did not withdraw your money the property prices returned to normal and experienced massive gains in the last ten years.

So investing in a REIT investment to add to a portfolio diversified in a way to maximize profits while hedging against risk of a downturn, is a highly recommended strategy. Especially for beginners just starting out and wanting to have money in the real estate markets.

4 COMMENTS

  1. cool found this post when researching for ways to invest in real estate because I know that buying land and property is a good safe investment and can be good for many years into the future. Truth be told I did not know about Reit investments but now will look more into them first.

  2. I have been thinking about buying property too because the real estate market has had such good returns for so many people I know. They got rich from it!

    Now though I think that buying a REIT investment is better starting out.

  3. wow i never new about reits at all or that you can invest in trust companies that deal in real estate therefore diverisfying in real estate without even having to buy property yourself

  4. good to know. Will have quite the inheritance soon and would like to know savvy ways to invest and make a profit on the investments.

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