It is possible to invest in real estate and be lucrative, but beginning your real estate investment will require a significant quantity of cash. While it’s easy to believe that the only method for investing in real estate would be to invest through direct ownership of property, the reality can be that there exist numerous other alternatives that can provide an income that is steady and lucrative without the requirement to purchase the property.

The real estate investment market does not have to necessarily require property ownership. In actual there are many other possibilities that permit investors to benefit of appreciation in real estate without the burden of the responsibility of ongoing maintaining the building. Investors who choose to invest outside of the traditional notion can invest in multiple locations and sizes of properties, as well as different types of real property. Although these investments could serve as an early stage for future property ownership but you could get the benefits from these investments convincing enough to keep from purchasing a home entirely.

1. Real Estate Investment Trusts (REIT)

Real Estate Investment Trust, also known as REIT is a firm that makes equity and debt investing in real estate for commercial use. The company was founded in 1960 with the intention of giving investors the chance to make investments in the real estate sector as an investment REIT is known to provide an average of 7 to 8 percent annually for investors in the middle and small-sized categories. Like mutual funds, REIT investors hold shares of the REIT and receive dividends in the form of dividends, contingent upon the performance of REIT investments.

As per Parth Mehta, the Managing Director of Paradigm Realty, “REITs are likely to be a game changer in this sector of the Indian real estate sector. They aid in the sponsorship of trusts for assets, and allow investors take ownership of diverse properties even though they might not be able buy an asset only. According to the REIT guidelines that at least 80 percent of the assets is required to be invested in assets that generate revenue while the remainder could be put into under-construction projects. Investors are investing in REITs mostly for higher earnings and growth over the long term.”

2. Real estate wholesale:

Wholesaling real estate is an excellent way for people to get into the real estate business without having to invest a large sum to start. It’s a type of property flipping in which the investor or wholesaler, signs an agreement to purchase an asset they believe is overpriced. The property is then offered to the buyer with a profit.

This process can help a novice to gain an understanding of the market for real estate and develop valuable negotiation abilities. Wholesalers make money through an expense that is tied to the deal, typically an amount that is a percent of the property’s cost.

3. Real Estate Mutual Funds:

Making investments with real estate mutual funds can be a fantastic option to diversify your real estate portfolio. The idea is like the mutual fund, where the investor holds a share of the fund, while the company owns the investment it earns.

The profits are paid delivered in the form of an income stream or a specific amount of appreciation for shares. Mutual funds that invest in real estate typically invest in REITs as well as real estate stocks, as well as direct purchase of commercial, residential and industrial units. It is an excellent option to investors with small amounts of capital who are hesitant to invest directly in real estate. One important thing to remember in this regard is that the returns from mutual funds that invest in real estate depend on many aspects, such as demand and supply dynamics as well as market conditions and the interest rates. “Real estate mutual funds are a great investment option for someone who wishes to take advantage of the appreciation in the real estate market but does not have sufficient amount to purchase a property, especially in cities such as Mumbai and Delhi where property prices are extremely high,” Amit Desai, Prop-invest Realty Owner. Amit Desai, Prop-invest Realty’s owner. Prop-invest Realty.

4. Best Online Investment Platforms:

Online platforms for real estate investments collect funds from a variety of investors to invest their funds on behalf of the investors in potential opportunities that otherwise would be prohibitively to pursue. They vary regarding investment opportunities properties, types of property, and investment requirements. With a particular focus on commercial and residential real estate, online platforms give investors the ability to invest in one property or an array of real property. However, the platform is best suited to investors who can afford to let their investments run unattended for a prolonged time.

5. Hard Money Loans:

The Hard Money Loan is the loan given from an individual an investor. Also known by the name of bridge loans a hard money loans are short-term loans to finance an investment. The loan is granted according to the value of the property being secured. Usually, the lender gives credit of up to 65-75 percent of the value of the property and is paid in interest, which is typically more than traditional property loans. If you’d like to join the real estate market but keep away from the problems of being a landlord You can consider investing in any of these options. If you are those who are not experts it is always best to seek out a real estate expert before making the leap.