3 Ways To Invest In Real Estate Without Buying Property 🏡

Crowdfunding platforms connect small investors with sponsors developing or renovating specific real estate projects. Minimum investments are usually under $1,000, allowing access for those without large sums to dedicate. In return, investors receive periodic interest payments and shares of rental income or property appreciation upon completion. Risk is higher than REITs but crowdfunding lowers the barrier to real estate investing.

REITs allow you to own shares in a company that invests in and manages various types of real estate like offices, apartments, shopping centers, and more. As a shareholder, you receive income from rents without the legwork of property management. REITs must pay out at least 90% of taxable income to shareholders as dividends annually. Many trade on major stock exchanges and provide diversification across different property sectors.

REIT ETFs provide instant diversification by bundling many REIT stocks into a single mutual fund-like vehicle. This mitigates company-specific risk compared to investing in a single REIT. ETFs typically track REIT indexes to passively deliver market returns at low costs. Some target specific property types like residential or commercial to focus your real estate exposure. Dividends are distributed and shares can be bought and sold throughout the trading day.

Real estate investing doesn't necessarily mean directly owning property. These alternatives offer the potential for income and appreciation with lower management obligations than physical assets. Investors can build real estate positions through low-cost, liquid vehicles to complement direct holdings.