Lesser-known Real Estate Investment Strategies That Can Help You Build Wealth
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The real estate market is continuously evolving, which makes it easier for investors to diversify their portfolios and look for potential investment opportunities. As Ali Ata points out, most people know about rental properties, real estate investment trusts (REIT), and house flipping as effective investment strategies. Other alternatives can help you earn from real estate, such as the ones discussed below.
Coworking Spaces
First emerging in 2005, coworking spaces have skyrocketed in popularity since then. Some analysts forecast that more than 1 million workers in the U.S. alone are expected to use a coworking space by the end of 2022. With the industry continuing to grow, investing in properties that can be used as coworking spaces may be profitable. You can invest in REITs that offer the property type or take a more hands-on approach by leasing a property out on your own.
Note Investing
Did you know there is a way to invest in real estate without buying an actual physical property? Ali Ata explains that one strategy is to purchase existing mortgages, which is also called note investing. To perform the strategy, a note investor acquires loans from lenders, effectively becoming the new loan holder. The borrower is then informed about the transaction and pays their monthly mortgage to the note investor.
Real Estate Syndication
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Gone are the days when you would need to gather hundreds of thousands or even millions of dollars to own a piece of property. One way to invest in real estate and become a property owner is through real estate syndication. The strategy calls for qualifying participants to pool their money together, which is then used to acquire large properties, such as apartments. The investors, also called "members" or "limited partners," receive an ownership stake in the property, depending on how much money they put up.
Do you know other investment strategies you want to share with others? Please share them in the comments below. If you want access to similar readings, follow this Ali Ata Twitter page.
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