Investing in real estate is a great way to diversify your portfolio, generate income, and take advantage of unique tax benefits. Learn the basics of real estate investing here.

Frequently Asked Questions
  • How do I invest in real estate?

    While purchasing a rental or commercial property is a great way to generate income, not many people have the cash available to do so. Real estate investment trusts (REITs) are publicly traded investment vehicles that offer retail investors real estate exposure without having to put forth a down payment or be a landlord. There are also various online real estate crowdfunding investment opportunities, real estate investment groups (REIGs), and avenues to rent properties you already own such as Airbnb.

  • What is a Real Estate Investment Trust (REIT)?

    A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate. These companies allow clients to invest in office buildings and rental properties, which are generally not feasible for individual investors to purchase directly. You can invest in REITs—as well as REIT mutual funds and REIT ETFs—by purchasing shares through a broker.

  • What is real estate wholesaling?

    Real estate wholesaling is a business venture in which the wholesaler acts like an intermediary, selling the property on behalf of the property owner and keeping the profit. The wholesaler doesn’t actually purchase the property, instead, they are afforded the right to sell the property on behalf of the owner for an amount of time determined by the contract.

  • Is flipping houses an easy way to make money?

    While flipping houses can in fact be a lucrative endeavor, it requires a lot of research, up-front capital, time, and patience. Flipping houses also requires hard labor skills to improve the home’s value. If you aren’t adept at handiwork, you will need to pay a professional to do the renovations and repairs, further reducing the odds of making a substantial profit on your investment.

Key Terms

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