5 Alternative Ways To Invest in Real Estate

Even if the Bubble Burst

We are floating high in a real estate bubble as home prices continue to soar rapidly. This bubble is caused by an increase in demand for housing and a limited supply to choose from. The result is homes being bought and sold for amounts significantly higher than the property is worth.

The United States last saw such a bubble from 2005 to 2008 before a series of delinquent mortgages caused the whole thing to burst. Fannie Mae estimates home prices will continue to rise 10.8% in 2022.

This is a decrease from the 18.8% rise in 2021. However, without the indicators we saw before the crash of 2008, there's no sign that today's real estate bubble will burst any time soon.

As the name implies, real estate crowdfunding platforms allow you to pool money together with multiple investors to acquire physical property.

Real Estate Crowdfunding

While not owning real estate on your own, investments may include residential real estate in rental properties or house flipping. There's also the option to purchase commercial properties for long-term rental income.

Real estate investment trusts, also known as REITs, offer a diversified portfolio of properties through investments in particular stocks. These companies mainly pursue commercial real estate but may also purchase large-scale residential properties.

Invest in Reits

These funds represent a managed list of investments encompassing stocks and bonds purchased at the net asset value (NAV) set by the U.S. Securities and Exchange Commission (SEC).

Invest in Real Estate Mutual Funds

A prime example is McDonald's, a company best known for its burgers and fries. However, McDonald's makes the lion's share of its income by renting land to franchisees and collecting it perpetually.

Invest in a Real Estate Focused Company

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