​Six Reliable Ways To Invest In Real Estate Without Buying Property In 2022

Okay, so you have some money accumulated with the purpose of investing. But you really hate dealing with that boring and tiresome thing of being a landlord and everything connected (like finding a good physical real estate object, dealing with its finishing, furnishing, finding tenants, collecting monthly payments from them, listening to their demands & whining, and spending your nerves when dealing with rude and ‘professional’ tenants).

Some of our readers might have already felt sick while reading the abovementioned issues connected to investment properties for sale in a role of a landlord – although we haven’t listed even a third part of all the responsibilities of a typical landlord!

Fortunately, there are other options of making your money make more money being on the market of real estate investments. Below, we’re considering ways of how to invest in real estate with little money.

1. REITs

REIT is a Real Estate Investment Trust. It is one of the market’s most highly liquid instruments, which are accessible to everyone who desires to make an investment, even a fairly small one. Investing in REITs happens via purchasing their shares, which are mostly publically traded on stock exchanges.

The nature of REIT is as such: it is a fund, which owns, operates, and/or invests in money-bringing properties. A REIT can specialize in a certain type of property (for instance, office, housing, commercial premises, hotels, timber factories, etc.) or can be oriented at any type of them. Also, some REITs may own shares of other REITs and other money-generating market instances. This is actually the lazy way to invest in real estate and you do nothing more after buying shares to receive income from your investments. This is a low-risk yet low-income investment.

2. ETFs

ETF is an Exchange Traded Fund, which is by nature a basket of securities that are traded on a stock exchange. This way is another option of how to invest in real estate with little money but it is actually riskier than a REIT since the income depends on how well some ETF is performing on the stock market. So, it can fall and rise. Thus, you should be familiar with stock trade in order to pick good ETFs that would generate income, not loss. You can buy and sell your ETF share the same as you would do with a regular share.

3. Mutual funds

A Mutual Fund is a pool of money professionally managed by money managers, who collect money from various individual and institutional investors to invest it into various instruments like bonds, stocks, money market instruments, and other assets. Not all of those assets are real-estate-specific, so you have a plentitude of choices here. Like in the case of ETF, this is a risky investment.

4. Investing in real estate managing companies

There are companies on the market, which do activities very similar to REITs with the basic difference that they do not create a REIT. You can become their client (a.k.a. investor) by signing an investment contract with them to become a co-owner of a specific property (instead of owning a share, by means of which you co-own a small share of everything that REIT owns and operates).

This is a way of being more specific in what you actually own. However, you are eligible to receive income only from a specific property that you own. One of the specialists in the market is the DGY Company, which currently offers many real estate objects in a fast-paced growing market of Ukraine and its capital.

5. Hire a property manager

If you have more money than just would be good enough for buying 1 or several shares of any of the above, it is time to think about hiring a property manager. This is a professional, who operates on the market of real estate, looking for opportunities and investing operated money to receive profit.

Although this individual or a company might be similar to all of the above, it is a more independent operator, capable of giving more profits due to the absence of a layer of too many other people who’d eat up a part of your profits (but risks are also higher). A manager can work only for you (if you give them enough large money) or work as a pooled manager, which means they’d collect money from more participants. As a rule, it is a licensed individual professional or a small company.

6. Real Estate Notes

This is a tool, which might be called differently in your country or not be present at all. The essence is to buy a note for a property from a titular owner at a discount price.

A previous owner might have gone broke and passed the object to the bank or another creditor to pay off the debt. A titular owner wants to cover the borne expenses to write off or close off debt and sells the property below the market price to swiftly do the bookings. You might be interested in this because of the discount price. A titular owner might be interested to sell fast and low because they might be not eligible to hold it on a balance for too long or because of accounting limitations. But in some cases, the associated risks might be present – like a possibility of courts with previous non-titular owners or their reluctance to free the premises so you move in or otherwise use it.