How to Build Your Own Personal Real Estate Empire
The past couple of years, the housing market has had us doing a double take…
With inventories tighter than an anaconda’s grip and mortgages going exceptionally lower, it’s certainly time to talk about investing in real estate. Not to mention the high percentages we’re seeing in regard to housing prices.
If you don’t get in on this now, future you will be sorely disappointed in all the gains that could have been.
You may be asking yourself what does all of this mean for you? I’m here to answer that.
It’s time to invest in this rewarding sector and reap the benefits that are soon to come.
You might think that you have to purchase property to invest in real estate.
That’s simply not true.
I’m here to show you a couple of tricks and give you the tools you need to succeed in the housing market without the hassle and responsibility that come with purchasing properties.
Let’s jump right in…
#1. Real Estate ETFs
Investing in physical properties can be very profitable, but the research that goes into it is time-consuming and proceedings can take ages to come to fruition.
If you like the speed of buying and selling stocks, you’ll love investing in exchange-traded funds, or ETFs.
Using real estate ETFs is the best way to own multiple shares of real estate investment trusts (REITs) in one fell swoop.
A REIT is a type of investment instrument that’s intended to give multiple investors the opportunity to pool their money together for the purpose of investing in multiple types of real estate (hotels, malls, community centers, etc.).
When you invest in REITs you become a shareholder who receives interest on the income that the REIT dispenses and the estate that it owns.
If you want to diversify your portfolio with a low price tag and avoid the tedious task of putting together your own list of REITs, ETFs are definitely for you.
You can reap the benefits of investing in property without ever having to sign a lease…
Now on to way No 2.
So we talked a little bit about real estate investment trusts, or REITs, earlier.
If you don’t mind doing a little bit of research, you can choose your own REITs instead of letting the ETFs choose them for you.
There are three major types of REITs: mortgage, equity and hybrid.
Mortgage REITs trade commercial and residential mortgages. Equity REITs deal with trading, owning and operating hard real estate assets. Hybrid REITs are a combination of both.
Most of the income from mortgage REITs comes from interest through mortgage loans, while the revenue from equity REITs is mainly generated through rent paid on the properties.
I recommend sticking with buying only publicly traded REITs. They have less risk than those that are nontraded.
One more benefit of REITs that I’d like to bring up are the tax advantages. Real estate investors avoid double taxation when investing in REITs because they don’t get hit with corporate-level income taxation. The only thing that will be taxed is paid by the shareholders when they receive their REIT income.
If you value receiving income from your investments, REITs are for you.
Now on to way No. 3.
# 3. Home Construction
There’s a loose cap on real estate market growth… The number of properties on the planet is finite. Thankfully, it’s a problem that is easily remedied by simply building more properties.
According to Worldometers, the world population is currently growing by 1.07% per year. This means we will continue to need to build more properties to house our growing population. What that means for you is that there will be more to invest in.
Not to mention rebuilding older neighborhoods that have started to fall apart.
Invest in home construction and cash in on our need for a roof over our heads. Be on the lookout for companies that do work in large homebuilding.
I hope you enjoyed this guide to building your own personal real estate empire.
If you follow this advice, you’ll be well on your way to securing large amounts of extra cash to pad your retirement savings and more!
Here’s to growing your wealth,
Chief Income Expert