Grow Your Wealth With Real Estate
Grow Your Wealth With Real Estate
Robert Kiyosaki made his fortune — and has helped thousands make theirs — by investing in real estate. (It’s one of Robert’s top ways to invest and grow your wealth. If you missed the previous article, click here.)
But let’s be honest — most of us don’t have the money lying around to invest in commercial real estate on our own.
Through my work on Money Revealed I learned that there are ways to profit from real estate without ever buying a physical property.
Today, I want to share three ways you can start to grow your income in the real estate market.
#1. Real Estate ETFs
This is a popular way to invest in real estate for those who like the speed of buying and selling stocks.
You never have to step foot on a property, yet you can still reap the benefits of the revenue being raked in.
Using a real estate exchange-traded fund (ETF) you can own multiple shares of real estate investment trusts (REITs) all in a few mouse clicks.
A REIT is a type of investment tool that gives multiple investors the chance to pool their money together with the shared goal of investing in multiple types of real estate.
Think hotels, malls and community centers.
When you invest in REITs you become a shareholder who receives interest on the income that the REIT creates and the estate that owns it.
You get to reap the benefits without ever having to leave your home.
If you don’t mind doing a little more research, you can invest in individual REITs instead of the group of REITs that an ETF is composed of.
You have three major types of REITs to choose from: mortgage, equity and hybrid.
Mortgage REITs trade residential and commercial mortgages. Equity REITs cover the trading, owning and operating of hard real estate assets. Hybrid REITs are a combination of the two.
Typically the income from mortgage REITs comes from interest on mortgage loans. Equity REITs usually gain revenue through rent paid on the properties.
I would recommend you stick to buying publicly traded REITs. They have less risk than REITs that are nontraded.
Publicly traded REITs are registered with the U.S. Securities and Exchange Commission (SEC) and regulated.
Anyone can invest in publicly traded REITs with a minimum investment of one share at the current share price, otherwise referred to as “at market.”
Unlike nontraded REITs, they are listed on a stock exchange. They can also be redeemed easily because they are liquid and can be traded every day the market is open.
#3. Real Estate Mutual Funds
Real estate mutual funds are a great way to diversify your portfolio. They also give you the advantage of a long-term investment.
You can create a steady flow of income for yourself and let it build up over time.
A mutual fund is another investment tool investors use to get together with the intent of buying into securities.
“Security” is a broad term used to describe types of investments you can buy or sell.
Mutual funds are run by professional money managers who allocate the fund’s investments to make money for the investor.
This strategy gives the little guy access to portfolios managed by professionals.
Keep an Eye Out…
Remember, before jumping into any one of these, it’s important to do your own research.
Next time I’ll be going into stock, bonds and other paper assets that you can use to grow your wealth.
Dr. Patrick Gentempo