Real estate investment is one of the most lucrative and sustainable ways to generate wealth.
However, many potential investors shy away from it because – let’s face it – being a landlord is a huge responsibility.
Addressing tenant complaints, handling maintenance, and dealing with vacancies can be time-consuming. Not many people want to deal with it day-to-day.
But, did you know that you don’t actually have to be a landlord to invest in real estate? Let’s delve into three effective methods.
3 Hands-Off Real Estate Investment Methods
Hiring a Property Manager
One of the easiest ways to offload the burden of landlord responsibilities is by hiring a competent property manager.
Property managers act as intermediaries between landlords and tenants, handling everything from rent collection, tenant queries, property maintenance, to even marketing the property.
With a nominal fee, typically a percentage of the monthly rent, property managers bring professionalism and expertise, ensuring your property remains in prime condition and fetches consistent returns.
Real Estate Investment Trusts (REITs)
REITs offer a hassle-free path to real estate investment. They function similar to stocks but represent companies that own or finance income-generating real estate across various sectors.
By investing in REITs, you indirectly own a piece of that real estate. It’s an excellent way to diversify your portfolio and get exposure to the real estate market without buying property. Moreover, by law, REITs are required to distribute a significant portion of their profits as dividends, ensuring a consistent income stream for investors.
Real Estate Crowdfunding
Technology has democratized many sectors, including real estate. Crowdfunding platforms allow individuals to pool resources and invest in bigger real estate projects, be it residential properties, commercial spaces, or even large-scale developments.
These platforms typically handle all operational aspects, making it easy for investors. You can start with a relatively small amount, making it accessible for many.