Here is a roadmap for investors to leverage the benefits of long-term investment returns.
FREMONT, CA: While most portfolios and retirement plans are vested in stocks and fixed-income investments, real estate offers an opportunity for portfolio diversification as it involves physical assets. Further, the long-term investment return in real estate is tough to compete with. With the advancement in technology and the emergence of affordable means such as online property investment plans, the real estate industry can expect massive growth in the next few years. Here are some of the ways in which online real estate investments can offer lucrative returns.
Investing in Real Estate Investment Trusts (REITs)
A REIT manages, buys, and sells real estate investment properties. Investors can purchase a share of a REIT and receive a piece of the profits obtained from the portfolio of properties. Buying a REIT can be compared to buying stocks of firms that manage, own, and lease real estate properties. REITs can focus on a number of property variants such as hotels, health care, retails, and others. Further, investors can purchase REIT share online without the hassles of dealing with costly property maintenance.
Real Estate Crowdfunding
There are a number of innovative tools that connect aspiring real estate investors with investment opportunities. Real estate crowdfunding offers one such platform that allows investors to place funds into projects. The platform connects investors with real estate developers. The investors put their money into projects such as in the construction of an apartment. Once the construction is over, investors get their share of profits.
Hard Money Investment
The investors who have an excess amount of cash in hand but are not willing to invest in physical property can lend the money as capital to other real estate investors. Hard money investments are especially lucrative in the case of fix-and-flip projects or when an investor needs to act quickly to procure a valuable property.
The various investment opportunities in the real estate sector are attracting investors from all walks of life.
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