Time to pick up where we left off. Here’s How to Start Investing in Real Estate Without Owning: Part 2
Investing in Pooled Funds
This investment platform involves a pooled fund with professional managers that are investing their effort and expertise. The theory of a pooled fund comprises of mutual investors putting their funds to a single pool for managers to access and invest with it. Normally, the funds have a different set of criteria for investor accreditation status, investment strategies, return/risk profiles and minimum investment levels.
Investing in leasing/rental property
Over the past decades, this type of investment has gained a lot of popularity. Many investors purchase property and lease/rent it to tenants. Also, the landlord will be responsible for the property costs, mortgage payments and taxes. During the mortgage process, the property will appreciate. The only drawback to this form of investment is that the tenants can destroy your property which may affect the cash flow. If you want to invest in leasing property, it is important to select the locations with low vacancy rates because tenants will prefer renting your property. Always remember that this type of investment involves a lot of responsibilities.
Real Estate Online Investing
This type of investment provides access to real estate investment via the internet. The real estate online investment opportunities are available to accredited investors. Some organizations allow direct access into real estate opportunity for free to middlemen such as brokers and fund managers. Also, investors usually access the real estate market with a low amount of money and without any difficulty of owning a property.
Real estate investment trusts (REITs)
Real estate investment trusts are a type of investment asset which allows small-scale investors to get into real estate. They are a non-governmental organization that use investor’s funds to buy income property. This type of investment will enable investors to purchase property and trade with them in the form of securities that is similar to other mutual funds. However, REIT’s pay about 90% of taxable income in the form of share to investors. In regards to the structure, it is possible to trade on the public exchange or private investment. For more information in regards to property management and real estate, you can check our website https://www.losangelespropertymanagementgroup.com.