There are a number of tried and true ways to get started in real estate. These are generally well-known and most often start with the purchase of a residential property. But what about alternative ways to invest in real estate, you know, the more unusual yet potentially lucrative?
Alternative Ways to Invest in Real Estate Without Buying a Home
People gravitate towards buying their own homes today as rent records continue to rise nationwide. But as it becomes harder to become a homeowner, many will assume that it only makes sense to meet the demand with supply.
It can help to diversify a property portfolio as well. If prospects and markets change, you should have a few assets you will be able to fall back on.
There are many opportunities to explore here. Read on to learn three alternative ways to invest in real estate that might just surprise you.
1. Invest in a Vineyard
Consider the value of the agricultural property. Fill your mind with things like gauging soil quality, elevation, and irrigation.
Be prepared for a few learning curves. Read everything there is to know about buying a vineyard in Texas. Keep an open mind as you can dig deeper than real estate investment only and explore lucrative opportunities in a wine subculture. Embrace all the various hobbies that can come to fruition on account of your efforts. Adopt new skills in harvesting, investment, or both, and enjoy the ride.
Know that real estate investors tend to sell vineyards to lifestyle and owner-operator investors. Appreciate that these entities often want a legacy business to pass down. Keep that in mind as you attempt to leverage the best prices possible from your agriculture property.
2. Invest in Construction
Obviously, homes need to be built before they are bought. So get ahead of the real estate market and invest in the construction industry instead.
Read about how momentum was being built in the construction industry last year. Know that the industry is forecasted to grow by 8.8% this year despite challenges. Expect growth to continue through to 2026, and plan your investments accordingly.
Be confident that your efforts will work wonders for your local community. Let that motivate you into action. Diversify your investments with mutual funds and exchange-traded funds to evenly disperse the amount of risk you face.
Set your sights on construction tech firms. Think about smart home features and drone usage. See which developments appear most promising and could use the most funding if you have the assets.
3. Investigate Online Real Estate Platforms
Being a real estate entrepreneur might mean you need to diversify your current portfolio. Ever think about investing in an online platform? Start by searching for reputable online real estate platforms. Evaluate reviews online. Ask for recommendations from people you know who are experienced and trustworthy.
Invest in a portfolio of projects or a single project only. Connect with real estate developers and discuss how you could potentially finance their efforts. Let their potential passion inspire you. Take comfort in that you can join others in these arrangements and share risks.
Benefit from only imparting small amounts of money into projects. Open more doors because of it and avoid the expense of purchasing a property outright. Look beyond residential deals and investigate the viability of commercial opportunities as well. Cast as wide a net as you are comfortable with.
Some additional alternative ways to invest in real estate:
- Real Estate Investment Trusts (REITs) allow you to invest in income-generating properties without owning them directly.
- Crowdfunding platforms enable pooling funds with other investors to buy properties.
- Real estate mutual funds and ETFs offer diversified real estate portfolios.
- House hacking involves renting out parts of your primary residence to generate income.
- Wholesaling involves contracting a property and selling the contract to another buyer.
- Short-term rentals, like those on Airbnb, can provide income from vacationers who rent them.
- Lastly, investing in real estate notes allows you to earn interest as a lender.
