Real estate investing is popular, and perhaps now more so than ever, as low mortgage rates make real estate more affordable. In fact, Americans love real estate, and aΒ 2019 Bankrate survey showed that it was their favorite long-term investment, even beating out stocks.
Consumers have a variety of ways that they can invest in real estate, including many options beyond just becoming a landlord, although thatβs a time-tested option for those who want to manage a property themselves. Plus, new business platforms also make it easier than ever to invest in real estate without having to come up with tens of thousands or more in cash.
Below are five tested methods for investing in real estate and what to watch out for.
5 best ways to invest in real estate
1. Buy your own home
2. Purchase a rental property and become a landlord
3. Consider flipping houses
4. Buy a real estate investment trust REIT
5. Use an online real estate platform
Investors looking to get into the real estate game have a variety of options for many kinds of budget. Real estate can be an attractive investment, but investors want to be sure to match their type of investment with their willingness and ability to manage it, including time commitments.