Investing in Real Estate Without a Property Purchase

The most obvious way to capitalize on the current booming housing market is to invest in traditional real estate opportunities. However, there is a myriad of other ways to grow your wealth through real estate by going through less risky back channels. Here are a few ideas to get you started:

 

EXPLORE NEW HOME CONSTRUCTION: Limited inventory of existing homes has led to an even bigger boom in the new home construction sector. Real estate experts expect this trend to continue for decades to come, making this industry sector a safe bet for your investment dollars.

 

PUT MONEY INTO REAL ESTATE FUNDS: As the stock market continues to see unprecedented growth, many financial experts are recommending investing in both real estate focused exchange-traded funds (ETF), as well as real estate specific mutual funds. By diversifying your accounts across a wide range of real estate markets, you will mitigate risk and have the opportunity to jump into emerging global housing markets.

 

LOOK ONLINE FOR OPPORTUNITIES: In today’s high tech market, digital is king. The real estate industry has not been left out of this trend and it seems like new online real estate companies are popping up every day. To capitalize on this emerging market, it would be wise to look into investing your real estate dollars into commercial and residential markets while receiving cash flow dividends in return.

 

INVEST IN A REAL ESTATE SPECIFIC COMPANY: Savvy investors often look to bypass the traditional real estate investments, instead choosing to place their funds into companies focused on real estate. Some examples of this type of company would be classic residential real estate companies, resorts, and timeshares.

 

REAL ESTATE INVESTMENT TRUSTS: These REIT’s are a popular way to put your money into this strong housing market without having to hold any physical property. This strategy is also an ideal way for novices to the field of real estate to get their feet wet and learn about the market without taking on the risk of buying property or having to learn how to be a property manager. Because REIT’s are required by law to provide a minimum of 90 percent of their taxable income to shareholder dividends, investors are guaranteed cash flow.

 

Invest in Real Estate on a Budget

Mark Twain famously advised, “Buy land, they’re not making it anymore.” For most of modern history, this has been sage advice. Now, more than ever, following this advice can often lead to big investment returns.

 

The stock market has seen a nine-year run up. Many experts expect a correction. Cryptocurrency has been hot, but it’s speculative and risky. Bitcoin and its brethren are no place to park money you are counting on for the future. What if you want more safety but a decent, predictable return?

 

Real estate investing provides the perfect solution. It provides real returns without the risk of a chunk of your cash disappearing overnight. However, many potential investors fail to realize that you can get started in real estate with as little as a few hundred dollars.

 

As noted in an article on Penny Hoarder, real estate starter portfolios, such as the Fundrise Starter Portfolio, have investment minimums of just $500, at a time. Investors buy shares of a diverse real estate portfolio that encompasses rental properties, land investments, commercial real estate, and other large projects. Investors have access to a dashboard that shows the properties they are invested in and their performance. The Fundrise Starter Portfolio pays a quarterly dividend and enjoyed an 11.44 percent gain in 2017.

 

For small investors who want direct ownership, raw land offers big opportunities. The price is generally cheap, and so is the ongoing costs of ownership, as explained by Fortune Builders writer JD Esajian. Property taxes can be as little as $100 per year. You are free to develop the land or sell it at a profit. Many raw land deals can be funded with just a few thousand dollars or less. Buyers should always beware if the land comes with any covenants or restrictions and consider only buying land unencumbered by a homeowners’ association. For example, a neighborhood association could restrict certain types of development or require development by a certain date. They can also prevent you from selling your land or force you to sell it.

 

Those enjoy being hands-on do well with fix-and-flip investment properties. Many lenders provide loans based on the after repaired value, which, if you find the right property, can mean $0 down and even cash in your pocket to fund the improvements. If being this hands on doesn’t interest you, you can get in on the lending side. Many private lenders are seeking investors with investment minimums of just a few thousand.

 

Surfing Vs. Snowboarding

 

Snowboarding and surfboarding are two sister sports that many believe are very similar to one another. While that may be true, the two sports also contain a few key differences that would make it somewhat difficult for someone to transfer between the two sports. Below we will examine the key similarities and difference between these two boardsports that have grown so much in the previous years.

 

Similarities

Balance

Both snowboarding and surfing require a boarder to balance themselves on their boards. In order to participate in either sport, a boarder must master balancing. Balance is essential when not only standing still, but when moving as well.

 

Waiting

Snowboarders and surfers need to wait before riding. Surfers often need to wait among masses of other surfers before hitting a wave, while snowboarders often need to wait to board a chair lift or hit a slope. Both require waits to ensure that someone does not get hit while a boarder is riding. Riders in both sports are very careful not to cut someone off and disturb their line.

 

Differences

Paddling versus Chair Lifts

To ride the waves, a surf boarder needs to paddle out to the wave and time their movements with the wave. On the other hand, a snowboarder has to take a chair lift to the top of a slope in order to ride the mountain. Though both involve some sort of preparation in order to hit a line, the preparation required for both are different.

 

Standing

Both sports require balance in order to stand on the board, but surfing requires a different kind of balance. The water, underneath a surfboard is already moving, which can make it difficult to stand up straight. Standing on a snowboard is somewhat difficult to the slipperiness of the ice and slopes, but the ground does not move as you try to maintain your balance on the board.

 

Though the snowboarding and surfing share their similarities, they have major differences that make it somewhat complicated to transition from one to the next. Both sports are great and teach essential skills in balance and general riding. Therefore, getting better in one of the sports may make it easier to transition to the other.