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Never mind that flipping houses is a business model, not aninvestment.
And the overwhelming majority offer higher potential returns and fewer headaches than becoming a landlord.
Theseseven real estate investment strategies will build your investment portfoliowithout you having to become a landlord.
Dont get me wrong, publicly traded REITs come with plenty of advantages.
To begin with, theyve performed well over the last half-century.
But those very advantages create REITs darker downsides.
The liquidity creates volatility.
For me, that defeats the purpose of diversifying my portfolio to include real estate.
These investments dont trade onpublic stock exchanges you buy and redeem shares directly with the operator.
Ive invested personally with many of these.
I havent been particularly impressed with most of them.
Even so, many offer instant diversification with alow minimum investment.
Just check that you do your homework by reading firsthand reviews of them from reputable analysts.
My favorite real estate crowdfunding platformis Groundfloor, which lends short-term loans to home flippers.
Ive invested tens of thousands with them over the years, and have mostly been happy with them.
Best of all, you could invest with as little as $10.
But Groundfloor is far from the only platform for investing in secured debt.
I happen to know Seveney personally, and his mortgage note fund has never missed a payment to investors.
But even he is quick to urge investors to do their homework.
Just be aware, every jot down of investment comes with risk, he said.
The oldest and best known of these is Arrived (formerly Arrived Homes).
Just dont expect returns that will light the world on fire.
Our investment club frequently vets and invests in syndications, and many come with modest risks to boot.
So why doesnt everyone invest in them?
To begin with, most come with a high minimum investment of between $50,000 and $100,000.
Even if you have that much to invest, many only allowwealthy accredited investorsto participate.
These investments also dont offer liquidity.
Likeall passive investments, you also forego control.
Passive truly means passive once you commit capital, said Pat Zingarella, founder of operator review platformInvest Clearly.
That allows for diversification, even as you enjoy all the benefits ofprivate equity real estate.
He should know hes invested on both sides of that equation.
You front some or all of the money as a silent partner, they do the work.
We get a cut of the profits, after putting up the lions share of the funds.
Only invest with people you feel absolute confidence in, who you trust to steward your money well.
I own a fractional interest in roughly 3,000 units and I havent taken a tenant phone call in years.
I can tell you firsthand, that I dont miss being a landlord one bit.
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