What You Need To Know About Real Estate Investment

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Real estate investment

Real estate investment involves the purchase, ownership, management, rental and/or sale of real estate for profit.

Forms of Real Estate Investment

Real Estate Investment takes different forms. Let’s look at them.

Buying and Renting: Buying and renting a property is where a person purchases a property and rents it out and uses money from rentals to maintain the property.

Real Estate Investment Trust (REIT): A real estate investment trust (REIT) is created when a corporation (or trust) uses investors’ money to purchase and operate income properties. It is a form of collective investment scheme regulated by the Securities and Exchange Commission (SEC). REITs are bought and sold on the major exchanges, just like any other stock.

The Investment scheme pools capital from investors and uses it in the acquisition of income generating real estate, mortgage loans, or a combination of both.  Investors hold an indirect interest in real estate.

Real Estate Investment Groups: Real estate investment groups are sort of like small mutual funds for rental properties. If you want to own a rental property, but do not want the hassle of being a property owner, a real estate investment group may be the solution for you.

A company will buy or build a set of apartment blocks and then allow investors to buy them through the company, thus joining the group. A single investor can own one or multiple units of self-contained living space, but the company operat