If you have grown tired of dealing with stocks but still want to invest for the future, getting into real estate is an increasingly popular option.
It lets you be more hands-on in the success of your investment, and it stands up well against inflation. The site Benzinga offers advice for people dipping their toes into real estate investment, with these being several of the popular options.
Real Estate Investment Trusts (REITs)
If you’d rather skip the whole process with stocks and put your money directly into the project, REITs are a good alternative. Investing in property also tends to be more reliable, as businesses aren’t usually subject to sudden, unpredictable swings in value.
A bit similar to the crowdfunding you might know from a site like Kickstarter, the word in this instance refers to multiple investors putting their money together to fund a project. The good thing is this typically keeps your ownership interest high if you invest, while also keeping your responsibility in the project low.
Single-Asset Real Estate Stocks
These have numerous advantages over the other forms of investments that have been mentioned. For one, they are open to anyone to invest in, regardless of their worth or how much they are able to invest.
Also, there are no minimum time amounts that you must hold onto them for, meaning you are not forced into staying with an investment you have lost faith in.
Fred Hubler, CEO and Chief Wealth Strategist for Creative Capital Wealth Management Group which offers retainer-based advice and access to accredited investments also uses institutional DST’s for their accredited investments.
“When you invest using a DST you are invested in the actual real estate, so you can qualify for 1031 exchanges, get amortization and depreciation, basically all the benefits of being the landlord, but none of the headaches since the sponsor runs the real estate within the DST,” according to Hubler. “The big drawback, Hubler continues, “is the investor loses control while the money is in the DST so liquidity needs should be addressed before investing in a DST.”
If you have not tried your hand at investing in real estate yet, you are overlooking many viable options for diversifying your potential sources of revenue.
To learn more about any of these investment choices, check out what Benzinga wrote on the matter here.
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