Investing in property is not just about buying a house and waiting for it to appreciate in value. It is also about finding the right property, making sure that the location is good, and taking on the responsibility of being a landlord. If you’re not up for these responsibilities, there are other ways to invest in real estate without buying a property yourself. In this article we will tell you how to do that. 

invest in real estate without buying an actual property

What is the difference between investing in real estate and buying property?

The difference between buying and investing in property is that the former is a long-term purchase, while the latter is an investment. Investing in property, also known as real estate investment, can be done in several ways. The most popular ones are:

  • Renting out your properties to generate rental income

  • Buying properties with the intention to resell them at a higher price

  • Investing in real estate via a real estate fund

Buying property as your own residential property is usually not considered an investment because there’s no intent to resell it at a higher price or rent it. Nevertheless, an investment in real estate for your own use positively affects your net worth.

How to invest in real estate without being the landlord

It is important to know that there are many types of income-producing real estate. You may be interested in buying a rental property, commercial real estate, or even raw land intending to develop it into an income-producing property later on. There are many ways to buy income-producing property without being a landlord. One way is to invest in commercial real estate through crowdfunding platforms, which are websites that allow investors to pool their money together to purchase an interest in commercial properties. Another way is to invest in REITs, which stands for Real Estate Investment Trusts. These investment vehicles are publicly traded companies that own and operate commercial properties such as office buildings, hotels, and malls.

Investing in real estate with $500

If you invest in real estate through a real estate fund, you will be paid an annual return based on your investment. Therefore, the lower your investment, the lower the profit is as well. On average you can count on a return of 7% if you invest through a real estate fund. A good percentage for people who, for example, want to grow their savings. If you invest through Red Sand Group, you can get into some projects with a minimum amount of $500. This makes it possible for novice investors or people with a lower budget to invest in real estate.

Are you curious about how we realize projects with the help of our investors? Continue reading, view our current projects or contact us for more information. In this way, together we ensure that you can quickly get started with investing in real estate, without actually buying real estate. 

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