Everyone knows there are HUGE profits to be made in real estate.
However, purchasing real estate can also be a huge investment, not to mention a potentially permanent one.
And then there’s the hassle of managing the property, dealing with tenants, and potentially reselling, not to mention all the additional costs for utilities, upkeep, and so on.
But there is a way for you to ride the real estate wave without actually owning any property.
With these tried-and-true methods, you can decrease the amount of your real estate investment by half and simultaneously increase your profit by 50.58%!
And the best part?
It takes absolutely no effort!
If you invest in Real Estate ETFs, REITs, and/or traditional stocks, you can make a huge profit without the stress and time it takes to actually own a property.
Let me explain how each of these easy investments work.
1. ETFs
ETF stands for Exchange Traded Fund. The concept, if you aren’t already familiar with it, is pretty simple.
ETFs offer a way to invest in regulated investment companies that raise capital to invest in a specific index.
Real Estate ETFs are just ETFs that invest in the real estate sector.
Buying into ETFs is just like buying shares, and there are opportunities to double or even triple your earnings when you invest.
The best part about Real Estate ETFs is that they allow you to earn revenue from real estate without having your money tied up in a single property.
Instead, ETFs are diversified in a number of companies, which means that a single share gives you access to dozens of investments within the ETF’s portfolio.
Not only does this save you from the headache of owning a physical property, but it also ensures a low-risk investment with a higher chance of steady return.
One such ETF, Vanguard Real Estate ETF (VNQ) has seen a steady 47% increase in the last 3 years, exemplifying the opportunity for a safe annual return.
2. REITs
REIT stands for Real Estate Investment Trust, and, like ETFs, REITs allow you to invest in the real estate market without the hassle of dealing with an actual property.
REITs allow multiple investors—including YOU—to put money together to use for investing in various types of real estate.
There are two kinds of REITs.
The first is Equity REITs, which grant you partial ownership of a real property, from which you can earn revenue.
The second kind of REITs are Mortgage REITs, which are investments related to mortgages and the financing of real estate ventures.
Both types of REITs can offer sizeable returns and are relatively low risk.
A great example of a strong REIT investment is the Granite Real Estate Investment Trust (GRP/U), which has seen an annual rise of between 34% and 48% each year for the past 4 years.
If you invested a quarter of the average cost of a single-family rental property into this REIT, you would’ve seen an annual return of $23,780!
3. Traditional stock investments
The stock market is full of opportunities, but one of the best to be found is in the real estate sector.
Rather than investing in a property, you can invest directly in real estate companies, which can mean big profits for no effort.
One real estate company, Getty Realty Corporation (GTY) saw a 62% increase in 2018 alone. For a quarter of the average single-family property cost, you would have made $30,174 in 2018.
If you had invested half of the cost of a single-family property, your return would have been $60,346!
To put all of this into perspective, just consider this:
The average annual rate of return on real estate is 11.42%.
But, by investing indirectly in real estate through ETFs, REITs, or traditional stocks, you can increase your annual earnings by as much as 50.58%!
And, you can do that with HALF the amount you would have to invest at minimum to buy actual property. Plus, you remove all the work and stress of property ownership and management!
