How to invest in real estate?

Real Estate

 In this blog, I will tell you about how to invest in real estate . In this I will give you some answers to this questions like how to invest in homes real estate and how to be successful in real state and talk about what is real estate? Real estate is a business there people invest Thier money on houses, flats and other type of building projects. First you need to have small capital to invest in real estate and slowly slowly expand your investment from profit. For Example you buy 30,000$ house and after some months you sold this house on 40,000$ so 10,000$ is your profit. Don't waste your profit on expenses save your profit and invest again on real estate with profit.

How to invest money on real estate?

1_REITs ( or Real Estate Investment Trust): REITs is very best platform to invest money. I will tell you how does REITs work and how to invest in REITs. 

How does REITs work?

First REITs was listed on New York in 1961. After that in US a lot of REITs are involved. In this platform people (retail investors) invest in REITs. REITs save all investment when REITs get bulk amount of investment. Then REITs buy the commercial properties or build the commercial properties. And then property give income to REITs. REITs distribute this income to retail investors. And when REITs sell these commercial property so amount of selling property distribute all the retail investors.

How to invest in REITs?

When any company get Thier IPU then company list on stock market and this process is called IPU( Initial public offering). Like that REITs get Thier IPU. Companies get Thier IPU after some days REITs will be listed on stock exchange then you will buy this shares. In this platform REITs give you different prices of properties like company shares.

How do REITs provide returns?

In REITs you will get return by 2 steps.

1st step: you will buy REITs share. REITs give you return in the form of devidends. So rule like that REITs earn distributable income REITs give you return 90% of this distributable income if you are share holder.

2nd steps: Any type of share you have. Share prices become high and if you sell your share you take the some profit of your share this is called capital appreciation.

2_Crowd funding: Crowd funding work like REITs. People invest in crowd funding like REITs. So small difference between Crowd funding and REITs.REITs buy properties themselves, whereas in crowdfunding, you have to fund the property purchase yourself. Crowd fund have multiple properties you choose any properties and give fund to this property. And property give you monthly return. And in this platform you will buy property where you want.

3_Owning physical property: Making a personal investment means buying a property yourself and renting it out, which provides you with a very good return. And this process you will make your own physical bussiness.

Real Estate vs Stock and bonds:

Real Estate and stock is two different investment place. Some smart researchers like Harvard tell about this and this research is called the rate of return on everything. In 1870 to 2015 they will research stocks bonds and real Estate with different countries and result is that 7.06% profit give real estate vs 6.88% give stocks and 2.53 give bonds. REITs is very best place to invest in real estate. REITs will build your own business.