Real estate investing offers a lot of potential rewards, but it also comes with a fair share of risk. One way to mitigate some of that risk is by investing in real estate without actually owning property. If you’re looking to invest in real estate without actually owning property, there are a few options available to you. Here are a few of the most common ways to do so:
Crowdfunding
Crowdfunding platforms like Fundraise and Realty Mogul allow investors to pool their money and invest in large-scale real estate projects. These platforms typically focus on residential and commercial properties and usually allow investors to choose which projects they want to invest in.
Real Estate Investment Trusts
Like crowdfunding, Real Estate Investment Trusts (REITs) offer investors a way to invest in large-scale real estate projects without owning any property themselves. REITs are companies that either own or finance income-producing real estate, and when you invest in one, you’re essentially buying shares of that company. REITs can be traded publicly on major exchanges or privately owned. Either way, they offer investors an opportunity to earn real estate income without dealing with the hassle of ownership.
Partnership Programs
Another way to get involved in the real estate market without owning any property is through partnership programs offered by some developers and firms. These programs typically involve an investment of anywhere from $50,000 to $200,000; in return, investors receive a percentage of the profits the project generates once it’s completed. The upside of these programs is that they offer the potential for high returns; the downside is that they’re also high-risk because there’s no guarantee that the project will be successful.
Online Real Estate Platforms
Several online real estate platforms allow investors to buy and sell properties without actually owning them. These platforms typically work by connecting buyers and sellers, who can negotiate directly with each other without going through a third party. Some popular online real estate platforms include investednest.com and gazeebo.com.
There are a number of ways you can get involved in the real estate market without actually owning any property yourself. This list only scratches the surface, but some popular methods include investing in REITs, crowdfunding, partnership programs, and online real estate platforms.
All these methods come with their own risks and rewards, so it’s essential to do your research before deciding which one is right for you. But the potential rewards can be great if you’re willing to take on some risk. Whatever route you decide to go, remember that investing in real estate is always going to be a bit of a gamble.