90% of the world’s millionaires make their fortune through real estate. At least that’s what Andrew Carnegie said earlier in the century.

Perhaps you like investing and at the moment almost all of your money is in the stock market. I know diversification is important, but I’m not sure if real estate investing is right for me. You may think that it requires a lot of money up front or a lot of effort. Some of that is true, but this year new options have emerged that can make real estate a potential investment.

Real estate investing is certainly not for everyone, but it can be very lucrative. Many people have made millions of dollars in real estate investments. If you’re looking to expand your horizons, here are five different ways to invest in real estate.

1. Invest In A Bigger Real Estate Deal

One of our favorite options in real estate investing is to invest in a large business with another person. This can be commercial or private.

Investing online in a large real estate business has two great benefits:

1. Low starting prices – Depending on the platform you use, you can start investing and owning properties as low as $500.
2. You do not have to be an Accredited Investor. Previously, you had to be an accredited investor to participate in this type of investment, but this rule has been abolished for certain types of investments.

So if you want to diversify your investments but don’t have a lot of cash to do so, this could be a lucrative starting place.

We recommend the following three platforms for real estate investment:

• Fundrise – Fundrise is a real estate investment trust (REIT) that allows you to invest in a basket of properties. In this way, you can diversify your real estate investments a bit. Plus, you can start from as little as $500.
• RealtyMogul – RealtyMogul offers investors a wide variety of properties to choose from, including residential, mixed use, commercial and retail. They charge no fees to the investor, rather they put the burden on the property owner. Investors can start making money just weeks after the project is funded. We are RealtyMogul partners and believe RealtyMogul is one of the best platforms out there right now.
• Streitwise – A new private equity REIT focused on cash flow real estate investing. One of the best pricing structures available. Accredited and non-accredited investors can participate.

2. Buy A Rental Property

Buying and renting a home is a great way to generate additional monthly cash flow.

To do that, you need to buy a home where your monthly mortgage payments, home insurance payments, and property tax payments are less than the rent you pay for the property. There are several ways to do this, such as buying in a high-rent area or paying a higher down payment to keep your mortgage payments low.

One of our favorite ways to do this online is with Roofstock. Easily buy single-family homes for rent (with existing tenants and cash flow) online. There are two disadvantages to renting a rental property directly. First, a large amount of cash is usually required up front, from the down payment to the required maintenance. You really need to evaluate if the return on investment is worth it.

His second big drawback in real estate is dealing with tenants. Tenants must be screened before they are allowed to move in. You will hear sobs at some point, so you need to learn to be firm with your tenants. If you’re the type of person who gives in easily, you might want to let a property management service manage your rental property. In any case, continuous efforts are required.

Rental properties can be very lucrative, depending on who you talk to. And if you’re careful about finding hidden properties ahead of time, you can leave the rest to property management services, and rental properties can be a form of semi-passive income.

3. Flipping Houses

Moving can be a bit risky, but it can also be very rewarding. And with real estate values ​​rising again, it’s a good time to start redistributing. Selling a house means buying a house below the market price, renovating it, and selling it at a profit.

To be a successful pinball player, you must track these bargain houses. The less work the better. An ideal inverted home is one that requires only minor cosmetic repairs. Then you can make your home more beautiful and sell it for profit.

If you decide to rebuild your home, you should be prepared for the possibility that it won’t sell quickly or make a big profit. Selling a home involves a lot of risk, so special attention should be paid to the location, needs and price of the home. However, if you have a knack for flipping a house, you may find that it’s one of the best investments you’ve ever made.

4. Rent A Portion Of Your Existing Home

If the idea of ​​buying a home just to get your money back over time doesn’t make sense, you might want to try renting out part of your home (aka house hacking) to start with. There are several options for this.

First, you can rent a guest room in the house, or you can rent the basement. If he hasn’t bought his first house yet and likes the idea, he can buy a duplex so he can live in one apartment and rent the next.

The advantage of renting part of the house is that you can closely monitor your tenants. Tenants are less likely to try to force you to pay rent if you live in the same household. Renting part of a house is also an opportunity to experience what it’s like to be a landlord without making a huge financial investment.

5. Real Estate Investment Trusts (REIT)

If you think real estate is a great investment but don’t want to dig too deep, consider listing your real estate investment on the stock market.

A real estate investment trust (REIT) is a great way to invest in real estate without actively owning shares. REITs are mutual funds that invest in mortgage products, bonds and stocks in the real estate niche.

There are many types of REITs. Stocks, Mortgages, Hybrids. Equity REITs invest in real estate and mortgage REITs invest in mortgages. A hybrid is a combination of the two. All three typically offer high yields. That means you’re paying back the interest that other people are paying on your mortgage.

If you don’t have time, investing in a REIT is a good idea.

His well-known REITs include American Capital Agency (NASDAQ:AGNC), Annalee (NYSE:NLY), real estate income (NYSE: oh).

Invest in REITs through your favorite broker. We recommend both Fidelity and TD Ameritrade.

What Do You Think?

These days you can invest in just about anything and you should do what feels right for you. Personally, I love real estate, but I know not everyone else does.

If you have been thinking about trying your hand at real estate investing, it’s good to know that there’s more than one way to go about it. Nevertheless, it’s important to do your due diligence before beginning with any new investment.