Real estate investment can be lucrative; however, you don’t have to have hundreds of thousands of dollars to spend on a property to get started. There are several forms of real estate investments that don’t require large sums of money or years of experience investing in the field to get started.
Invest in a Real Estate Investment Trust (REIT)
Real Estate Investment Trusts, abbreviated as REITs for plural, are sort of like mutual funds for investing in property. Some REITs are publicly traded, while others are not. Some start with entry costs of as little as $500. These trusts, which are companies, pool together money from numerous investors to buy and sell property. The financial process of investing in a publicly-traded REIT is as simple as purchasing a stock.
REITs pay almost all of their net taxable income to shareholders and investors, usually as dividends, so it can be a great way to get small returns on your investment without having to sell your shares.
Purchase stock in real estate-related companies
There are many publicly traded real estate-related companies that you can purchase stock in apart from REITs. Consider purchasing shares of construction companies, property developers, and hotel operators. Hilton and Marriot are among publicly traded hotel and resort operators recommended for investment by InvestorPlace.
Many top stocks in these categories are not household names, so don’t only buy shares of companies with whom you are already familiar.
Buy Land
Purchasing unbuilt rural land at low prices and selling it for profit can be a lucrative business. In the past two decades, developments and homes have rapidly expanded in rural areas around the country. If you travel about thirty minutes to a rural area away from nearly any city, you will likely be able to find seemingly random roads lined with million-dollar homes.
Many people are willing to pay a premium price to have a quiet place to live where they can build a dream home for their family. Learn about migration trends and talk to real estate agents to see what the demand is for home construction in specific rural areas.
In Conclusion
Real Estate can be a great investment opportunity for those on a budget. From REITs to owning individual stocks to buying and selling land, there are many ways to profit. Make sure that before you invest, you do your research to best set yourself up for successful investments.
