The Different Types of Real Estate Investments That Exist Today

Kreg Bale
Kreg Bale December 17, 2021
Updated 2021/12/17 at 10:46 AM
The Different Types of Real Estate Investments That Exist Today

Are you tempted to dip your toe into the world of real estate investing? Many millionaires say it’s still the best form of investment, and for good reason. If there’s something people will always need, it’s somewhere to lay their head.

But are you bamboozled by the number of different real estate investing options? Or are you surprised to learn that there are many types of real estate investments?

Whatever your interest, read on to find out about the different types of real estate investments that exist today.

Traditional Landlord

This is what most of us think of when we hear real estate investments. This means buying a property that you can rent out, giving you a predictable return on investment each month.

In many areas, there is a great demand in the housing market for rental properties. Some people prefer the flexibility of renting, while others are not in a position to buy right now. Invest in the right type of rental properties that appeal to a broad range of people and you should have predictable income.

Some landlords have a single property as a sideline. Others choose to make this their main business and build an investment portfolio. Make wise investments and you may be able to derive all your income from property.

The pros are that it’s a long-term investment, and you own a property at the end of the mortgage term. The downside is that returns may be lower than other types of investment. If you’re new to property investing, then get tips for real estate investors to make wise choices.

Buy to Flip Investor

Everybody’s heard about buying the worst house on the best street and flipping it for a profit.

With more and more people interested in this kind of investing it’s not easy to find bargains anymore. But if you hit on the right investment, it could be a way to earn big returns.

Get to know the local real estate market well. Investigate housing marketing to see what is popular in your target area. Make sure you never invest more than you can realistically get in return.

REIT Investments

Looking for a truly passive investment opportunity? Investing in a real estate investment trust (REIT) could be a great choice.

You invest in shares in a real estate investment company and then they invest in and manage property for you. The plus side is that you don’t do any hard work. The downside is that you have little if any control over the investments they make.

Finding the Right Real Estate Investments for You

If you’ve got the right circumstances, real estate investments could be a great way to invest your money.

They generate income year-round, they’re always in demand, and property prices usually rise year by year. Whether you become a landlord, a fix and flip, or REIT investor, the real estate market is certainly worth investigating.

If you’ve enjoyed this article, be sure to check out the rest of our blog! We’ve got tons of fresh content to help you navigate the financial world and make your dollars work hard for you.


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