Real Estate investments are currently the most profitable source of cash flow but, the risks are equally higher. If you want to add variations to your investment profile with real estate investments; you need to analyze the real estate market thoroughly and find trusted sources to generate cash flow. Many people think if you don’t own a home or personal space you cannot enjoy the benefits of real estate investment. It’s not true actually. There are multiple sources that can help you invest in real estate with assured profits provided you do it correctly. Here are some of the best ways to invest in real estate without buying a home.
Through Real estate crowd-funding sites
Crowdfunding websites are the best way to invest in real estate if you don’t own properties. Bulkestate is among the best crowdfunding websites that let you invest in different third-party properties. You need to create an account with the site, fund your account with the deposit, and choose the best deal as per your wish and confirm it with a set reservation fee. You need to sign the purchase agreement to start making profits from the properties rental and sold value. The website returns you set reservation fee within 48 hours if the investment goals are not met.
ETFs are known as the Exchange Traded Funds that are basically index funds and can be traded like stocks. Just like you can buy stocks and earn profits from them, ETF also helps you to trade your funds by tracking several stock markets and giving you profits with the rise in market value. If you have a low budget for real estate investment, ETF is a good choice as it not only offers you quality returns as per your investment but, also lowers your tax rate. The two best examples of real estate ETFs are – Vanguard’s VNQ that invests in REITs properties and IYR that invests in domestic real estate properties.
REITs are real estate investment trusts that allow you to invest in third-party commercial real estate properties without owning them. It lets investors hold a share in its trusted properties and receive income from the profits generated from the rents collected from the properties or from its sold value. The best way to generate cash flow thorough REITs is by investing in Equity REITs that operates in income producing Real estate. Other REITs are known as Mortgage REITs that provide mortgages on real estates and generates cash flow through mortgage loans; Hybrid REITs that make their own mortgages and properties; Public Non-Traded REITs that are not involved in trading and Private REITs that deals with private investments.
Through Real estate Mutual Funds
Real Estate mutual funds are a great choice for low-budget investors. You can start investing here with just Rs.5,000 and trade in stocks and bonds. If you have can afford to invest a higher amount; go for the real estate stocks. It is similar to holding a company’s stocks and making money from dividends as the company makes profits. Real estate mutual funds invest in REITs, real estate stock market and various other indices. Most of the mutual funds are open-ended with an option to redeem and guaranteed returns. For the low budget investors, go real estate mutual bonds to earn profit from the interest rates with lesser risk.
Through Home Constructions
The home Construction market is here to stay forever in the Real estate market. So, as a side hustle you can invest in the trusted Home Builders properties to have assured profits from their sold and rental value. You can do it with the commercial properties or the new neighborhood constructions that have higher chances of getting flourished and being sold in the near future. You can even choose to invest in the Home constructions that are restoring the old properties to develop the neighborhood. But, make sure you find a reputed builder for investment.