Financial experts highly recommend everyone, especially young individuals, to invest their money in many ways. This is because they believe that investing a great way of letting your personal funds grow significantly. One of the best investments that you can have is in real estate.

Real estate is considered as a necessity, which is why you can ensure high returns from it since money continually flows. At the same time, it is important to make sure that you are investing your money with reputable and reliable partners.

In this article, we will share five real estate investment options that you can get to let your money grow:

Type #1: Residential

When people talk about real estate investment, this is the very aspect that they will associate it with. Residential real estate investment refers to having your single-family home, vacation homes, or condo, rented by tenants, and collecting fees from them. 

How can you make money from it:

  • By collecting rental fees from your tenants
  • By buying and flipping a house for a profit

Type #2: Commercial

This is a real estate investment where businesses rent a part or whole of your property. Common industries that rent spaces are single businesses requiring office spaces, retail stores, gas stations, and restaurants. Warehouses and factories also fall under the commercial category. One advantage of commercial investment is that it receives longer leases and higher rental fees when compared to a residential option.

How can you make money from it:

  • By collecting rental or lease fees from businesses that occupy your property

Type #3: Raw Land

This real estate investment is suitable for individuals who have large amounts of capital to invest and in-depth knowledge about real estate. Investors usually buy land to develop either residential or commercial properties. The difference between the raw land and the previous two options is that you can build the properties yourself or let the tenants build theirs. 

How can you make money from it:

  • By collecting rental fees to those who occupy your land

Type #4: REITs

Real estate investment trusts (REITs) are a type of investment where you shell out money to invest in commercial real estates, such as offices, hotels, and malls, which work through a stock exchange. The biggest advantage of this is that you are investing in a companies’ real estate without the risks associated with owning real estate directly. Additionally, it offers the best liquidity since you can quickly sell your stocks to others in case you urgently need funds.

How can you make money from it:

  • By buying and selling stocks from companies’ real estates

Type #5: Crowdfunding

This type of new real estate investment can bring investors higher returns. However, keep in mind that this significantly carries higher risks than other options. Also, many crowdfunding platforms are only open to accredited investors with a high net worth value of more than $1 million.

How can you make money from it:

  • By becoming a shareholder and funding the real estate property of a company

Conclusion

Real estate is one of the best investments that you can have. Before you invest, however, you should learn which type of real estate investment fits your needs, capability, and lifestyle. If you own multiple real estate properties, you can choose to set it up for sale or rent, which will provide you a passive income. If you are aiming for higher revenue, you may consider investing in commercial or raw land real estate. However, if you do not want the hassle of managing multiple properties, you can instead buy stocks or trust from companies’ real estates.

If you need further education and guidance regarding property management, connect with us today at Polaris Property Management. Our professional and trusted real estate agents are equipped with the best knowledge and expertise about the Indianapolis real estate industry!