Investing in real estate can be very rewarding. When most people learn to invest in real estate, they turn to single-family homes first, but real estate expert Corey Shader says there are plenty of other opportunities in the market.
In fact, real estate investors have endless opportunities to jump in and benefit from the market. Below are three alternatives to single-family homes that can produce solid returns and generate passive income.
1. Real Estate Investment Trusts
REITs, as they are more commonly known, are a great entry point into real estate investing. They essentially act just like mutual funds do. It allows you to invest in real estate without actually owning the physical property.
You’ll purchase a share of a REIT, similar to how you would a mutual fund or stock, and you’ll be paid dividends from the trust. This investment vehicle is a great way to get involved with real estate without having to worry about everything that’s involved with owning a physical property.
Generally speaking, REITs are solid investments. Many economists believe that they are a great place to invest money in challenging economic times, as a sort of hedge against inflation.
2. Real Estate Crowdfunding
A more modern way to invest in the sector is through real estate crowdfunding. There are online platforms available for people to join together with a group of people to invest in larger residential or commercial real estate deals.
One positive aspect of crowdfunding is that it allows you to invest significantly less capital than it would take to own a property outright on your own. The platforms will connect investors to developers who need financing to move forward with projects.
Some of these real estate crowdfunding platforms allow you to choose between investing in a single project or a wider portfolio of real estate projects, which allows you to diversify your investments in the sector.
What’s more, by investing online in this way, you can diversify your real estate investments from a geographic standpoint. This allows you to avoid the potential pitfall of your investments failing if a specific real estate market collapses.
3. Rental Property
If you’d rather have more direct control of the property itself and your income from it, then you could consider purchasing a rental property. Most people think of this in terms of properties that are located in tourist areas, but it doesn’t have to be this way.
Corey Shader says that there’s a lot of money to be made in rental properties located near college towns, in cities and even in suburban areas. One big positive of this type of investing is that you’ll have more control over your investment and will reap all the rewards it provides.
The downside is that it’ll be on your shoulders to fix the property, maintain it, find tenants and manage the day-to-day operations. You could hire a property manager to handle the latter part, but this type of real estate investing is more like a full-time job — at least at first.
About Corey Shader
Corey Shader is a self-made entrepreneur, consultant, investor, real estate developer, and founder of several companies, notably Insurance Pipeline. Operating primarily out of Ft. Lauderdale, Corey’s endeavors span across the nation, consulting for start-ups, and sitting on the board of digital media and senior healthcare agencies. As a consultant, Corey helps young businesses develop sales funnels and maximize profitability. Shader takes pride in challenging others to push themselves to be their very best — he believes in constant self-improvement, inspiring others through sharing his own life experiences.