Here’s a fun fact, you can invest in real estate without physically having anything to do with the property! This is the power of real estate investing companies. These companies equip you to hold a stake in real estate without dealing with issues like maintenance or handling tenants. By taking the administration and landlord issues off your shoulders, real estate investment companies set you up to make passive income without worrying about the nitty-gritty.
Types Real Estate Investment Companies
There is a wide variety of real estate investment companies you can choose from. Not every company offers the same type of investments however. Investors have the option to use a private REIT, a crowdfunding platform or a real estate marketplace.
REITs are a simple and accessible way to invest in real estate without becoming a landlord or investing thousands of dollars at once. In most cases, buying REITs is just as easy as buying equities like stocks and bonds.
A growing trend in real estate is crowdfunding. The hands off benefits of Crowdfunding is similar to that of REITs, but offer a little bit more control over the investment. Both crowdfunding and REITs allow investors to direct money toward properties and see returns without needing to actively manage the property. The main difference is with crowdfunding, you can funnel your money directly into tangible real estate assets. With REITs you are investing money with the company who in turn goes and invests money in real estate.
Real Estate Investing Platforms
Real estate investing platforms are online marketplaces where investors can find both commercial and residential properties and either buy the property or buy shares in it. The platform where you find the properties will usually take care of the physical management of that property, still making it less of a hassle than finding and managing the property on your own. What distinguishes these platforms from the ones mentioned above however is that they are usually only exclusive to accredited investors – those with at least $250,000 yearly salary and/or $1,000,000 net worth.
Real estate investing is its own animal, regardless of whether you’re doing it through a crowdfunding platform or in a more traditional manner. Regardless of the venue, you have to be prepared to put cash upfront and be ready for the fact that this is not a liquid investment.
You’ll be making a commitment — and you won’t immediately be able to pull out your investment monies, so be prepared to stay with a property for at least 3 years. With real estate as with many things, time brings its own reward.
Real Estate Funding Solutions has over 20 years of experience in the field and is more than happy to answer any questions you may have about your upcoming real estate investment journey. Visit us online at www.realestatefundingsolutions.com to learn more!