Almost everyone who is an investor knows how solid investing in the real estate market has been for the past fifty years, and still continues to be a much better option than investing in stocks and bonds.
What the investor must be aware of before they get into real estate is that they have to understand that this is lot more complicated than other types of investing while having absolutely nothing to do with the buying of a home but much more than that.
So as an introduction to this type of investment, here are a few types of real estate investments that you can make:
#1: Basic Rental Properties
This is one of the oldest forms of real estate investing which is nothing but being a landlord of a property and renting it out to tenants. All the landlord has to do is pay the mortgage, taxes and other costs associated with maintenance and enjoy the rent that comes in month after month.
#2: Real Estate Trading
This is very similar to the buying of properties to rent out (being a landlord) but the only difference between the two is that this type of real estate investment will last for only three to four months after which the property in question will be sold for a profit. It is also known as ‘flipping’.
In this form of investment, REITs are nothing but a publicly-traded instrument where a corporation uses investors’ money to buy and operate income properties. The primary reason why REITs are so popular is because it allows these corporations to avoid corporate tax.