Investing in real estate is a popular way to increase wealth and generate passive income. Currently there are several investment options in real estate, such as REIGs (Real Estate Investment Groups), REITs (Real Estate Investment Trusts) and real estate crowdfunding.
We will explore all three below.
1. Real Estate Investment Groups (REIGs)
A REIG is a real estate investment company that buys, sells, and rents real estate, such as houses, apartments, condos, and commercial properties.
Investors in a REIG work together and there is no limit to the number of shareholders or partners that can participate.
REIGs can have a varied amount of real estate in their portfolio, and as investors put in more capital, more properties can be acquired and higher returns earned.
REIGs are suitable for high net worth investors who can invest a large portion of their money in property. The returns can be good, but they can vary depending on the REIG’s strategy.
2. Real Estate Investment Trusts (REITs)
REITs are companies that acquire, manage and finance real estate properties and are characterized by their liquidity, that is, by their ease of converting into cash, as explained in Money.
REITs can be bought and sold on the stock exchange and are traded in the same way as mutual funds or individual stocks. They can be easily purchased through a brokerage account and can be bought and sold as desired.
REITs typically focus on a specific area, such as commercial buildings in central locations, data center operations, or wind farms.
3. Real estate crowdfunding platforms
Real estate crowdfunding is a form of investment that is similar to REIGs and REITs in that it involves pooling money from multiple investors into a fund to purchase real estate. Investors earn an ownership interest through their contribution to the fund.
One of the main advantages of real estate crowdfunding is that it does not require a significant investment and you can start investing with just a small amount of money, like $100.
This type of crowdfunding makes real estate investing accessible to the average individual.
You may also like:
– Bill Gates asks for $4.75 million for a luxurious apartment he bought for $5 million
– How much money do you need to buy a house this 2023 in the US?
– 5 Tips for Buying a Home During an Economic Downturn