For housing market investors, rental properties have a number of drawbacks, ranging from poor renters to expensive repairs and while poorly prepared investors risk their equity if they overpay on a property, the strong housing market suggests that with preparation, there are plenty of opportunities to be found.
A real estate investment trust (REIT) is a form of mutual fund which invests in real estate. A commercial property portfolio or other real estate assets are purchased using money raised from investors.
It is another tried and tested method for making money from the housing market. Fix and flip and BRRRR (Buy, Refurbish, Rent, Refinance, Repeat) methods are where the investor purchases a property, pays for repairs and renovations, and then resells it for a profit or finds tenants.
Crowdfunding is a relatively new way for making investments in real estate, yet there is money to be made. When a developer or professional investor sees an opportunity to buy or build a commercial real estate asset, they may choose to crowdfund a portion of the project’s funding.