Investing in real estate: main options available

Do you want to invest in real estate? There are plenty of options that wait for you. Investing in real estate is the most profitable decision you can make at the moment. Besides real estate, there is no other field that guarantees this sort of stability. You will gain profit no matter what happens or regardless of how the economy fluctuates. Real estate is the safest bet at the moment and this is the main reason why you should try to learn as much as possible about it and see what you can do with your money. Some real estate strategies actually require a very small initial investment and can go a long way if managed correctly. Here are the ones you might want to know about:

DSTs and 1031 exchanges

A Delaware Statutory Trust act, also known as DST, is a type of investment strategy that you can select if you want to defer taxes and to work with minimum initial investments. For a DST, there is no limit of investors compared to the case of TIC (Tenancy-In-Common) where the limit is 35 investors. DSTs are a great choice for passive 1031 exchanges. These allow people to swap commercial properties while deferring taxes, which is very convenient for businessowners who don’t want to spend a lot of money when making a change. Owning a business in an industry that doesn’t seem to be profitable any longer, swapping commercial assets is the one decision that won’t have any consequences. Learn about the limitations of a Delaware Statutory Trust and of 1031 exchanges to avoid risks.

Buy and Hold

Another passive investment strategy, Buy and Hold represents the best method to gain profit if not required immediately. Buy and Hold involves buying stocks and holding them until the fluctuations on the market is in your favor. When you consider that you can sell the respective sticks and gain profit, without worrying about shirt-term financial movements, then this option is the most appropriate for you. Of course, in order to opt for this type of passive investment, you have to possess some knowledge in the field of real estate and to predict how the market is going to fluctuate. Also, it is not a long-term type of investment because it is uncertain and it involves asset classes.

ETFs (Exchange-Traded Fund)

ETFs are a method to track one or more assets in different domains, real estate including. ETFs are different from mutual funds, considering the fact that here stocks are traded on stock exchanges only. ETFs involve much lower fees compared to mutual funds and they are also showing a higher daily liquidity, meaning that you won’t get stuck while working with stocks. The asset won’t longer have a net asset value, since it is perceived as a simple stock. The same goes with REITs (Real Estate Investment Trust) – but it only applies to companies that own and operate income-producing assets. In both cases there are regulatory guidelines that need to be respected, regardless of your main purpose.