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There are different ways you can start investing in real estate, no matter how much capital you have readily available and your level of experience. Real estate has the allure of being considered a tangible asset, and there is the potential for regular income with real estate. Today, we’ll share with you few ways you can get started in real estate investments and add to your diversified investment portfolio.
1. Try Investing in Real Estate Related Companies
There are a number of companies that are involved in real estate activities, e.g., home builders, holding companies, commercial ventures, realty companies, mortgage-related companies, etc. Usually, when investing in these companies, you don’t need very much capital at all. You just need to open a brokerage account after which you can start buying some shares. Some real estate companies also pay dividends, which makes it possible for you to receive regular income on top of the capital appreciation you might like.
2. Your Primary Residence
Owning your own home is a perfectly acceptable way to start your real estate investing career.
3. Rent Out Extra Space in Your Home
If you already own a home you could rent out extra room, the basement, parking space, or the garage to generate extra side income.
4. Consider Buying Rental Properties
Another popular way you can start investing in real estate is through the purchase of rental properties. You can buy a piece of property and then rent it out.
5. Real Estate Investment Trusts (REITs)
Let’s say you don’t have enough capital to buy a property and you don’t want to borrow a large sum of money, you can still get exposure to real estate investing through REITs. REITs are traded on exchanges, like regular stocks. However, they invest most of their assets in real estate, and the income is mostly derived from real estate. You can look out for REITs that are majorly into commercial properties, residential properties, or even investments related to real estate.
6. Real Estate Syndication through Crowdfunding
Another way you can start investing in real estate is through crowdfunding investment. This can be achieved by joining any trusted platform and invest in the available opportunities.
The bottom line is that there are different ways you can benefit from real estate investing. You don’t always have to buy a property in order to add real estate to your diversified portfolio. Always keep this in mind that there’s always risk with any investment including real estate.
