Making the first investment in the real estate could seem a little tough to some. Either they may not have the money to pay for the down payment or most importantly they might not be mentally prepared to face all the stress and responsibilities that being the owner of a commercial property brings.

Moreover, lots of aspiring investor would like to first experiment with a small investment to see how it goes and to acquire some knowledge and experience with the real estate investing.

Fortunately, there are many ways through which you can venture into the real estate investing with little amount, no experience and above all no need to own and manage the property.

A real estate based Exchange Traded Fund (ETF) could be the best bet for such aspiring real estate investors. Like mutual funds, ETF is a collection of stocks and bonds in a single fund, thus ensuring greater diversification, lower costs, lower risk and good returns.

Lots of new entrants in the world of real estate investing do so through real estate investment trust (REIT). REIT are the companies that own and manage commercial real estate properties like rental homes, storage houses, retail shops and mortgage bonds. Here also like ETF you can enter as an investor with small investment, you will not be owning any property but get your share from the dividend.

You can also invest in companies that could have direct or indirect focus on real estate business. Here returns on investments are not as great as REIT but there is more freedom to invest and expand. You can invest in companies that are not actually real estate companies, but real estate is an important component of their business for example, hotels, resorts and shopping malls. You can also invest in pure real estate companies like RE/MAX that have real estate business as their primary focus.

Since the past 1-year, global economy has taken a beating due to the pandemic. Initially due to social distancing and lockdowns, the real estate deals almost dried up. When the real estate market eventually picked up, the housing inventory was extremely limited, as no new major construction activity was happening, that lead to sellers only market.  The construction activity has picked up as there is a huge demand for new houses. Investing in real estate construction companies makes more sense now than ever before. This can lead to exceptionally good returns on investments with out any burden of owning a property.

I am sure, you would be having lots of questions regarding real estate investing and how profitable it could be, with out owning a property. Please give American Made Home Solutions a call at  (360) 386-7493.