How to Make Money on Real Estate if You’re Not Ready to Buy

Real Estate Investment on Any Budget

Real Estate Trusts are investment options that allow you to decide how much money you’ll put up toward real estate. Groups like Alexandria Real Estate, Realty Income and Sun Hung Properties are all publicly traded entities that deal in real estate.

How does it work?

These companies exist for the sole purpose of buying and selling real estate. Some of the properties are held to generate rental income for its shareholders to benefit from, while other properties are bought and resold for a profit.

Basically, when you own stock in a real estate trust, you own a portion of their real estate portfolio.

What do the experts say?

According to Forbes Real Estate Council, adding real estate stock to your portfolio is a way to gain the security of bonds, with the profit potential of most publicly traded stock.

Most well-managed real estate increases in value with time, writes David Wieland.

“well-managed property rarely decreases in price over time. This low volatility of cash flow generates stable returns that grow in line with cash flow compared to the fixed rate in bond investment.”