When it comes to investing, real estate is a solid option. It’s a physical asset with a long history of appreciation and can provide you with rental income and tax breaks.

However, there are a few different ways to invest in real estate, and the method you choose will depend on your goals and risk tolerance.

1. Real Estate Investment Trusts (REITs)

REITs are a good option if you’re looking for a hands-off way to invest in real estate.

These companies own and operate income-producing real estate, such as office buildings, apartments, shopping centers, commercial real estate properties, and warehouses.

When you invest in a REIT, you’re essentially buying shares of the company, which gives you a stake in the property it owns.

One of the benefits of investing in REITs is that they’re required by law to pay out at least 90% of their taxable income to shareholders in the form of dividends.

This makes them a good option for investors looking for regular income from their investments.

REITs are a good option for hands-off real estate investing. There are several REIT apps available, like Fundrise, that make it easy to invest in real estate.

With a REIT app, you can buy shares in a company that owns and operates income-producing real estate.

This gives you a stake in the property and provides regular income from your investment.

2. Rental Properties

You could consider buying a rental property if you’re looking for a more hands-on approach to real estate investing.

This will involve finding a property you think will be in demand by renters, securing financing, and finding tenants.

One of the benefits of owning a rental property is that you’ll receive regular income from your tenants in the form of rent.

And, if the property appreciates in value, you’ll also see a return on your investment when you sell.

However, one thing to consider with rental properties is that they can require a lot of maintenance, and you would also have to work as a landlord.

There are real estate sites that can help with maintenance and finding tenants.

Some apps like Zillow and Trulia can help you find the perfect rental property.

3. Fix-and-Flip Properties

Another option for those who want a more hands-on approach to real estate investing is fix-and-flip properties.

This involves buying an investment property that needs some work, fixing it up, and then selling it for a profit.

One of the benefits of fix-and-flip properties is that you can make a significant return on your investment if you do it right.

However, there is also a higher level of risk involved, as you could end up losing money if the property doesn’t sell for as much as you’ve invested or if the property value decreases.

This type of property is best for experienced investors and not recommended for everyday investors.

One of the best home-flipping apps is Xome, which allows you to see properties that are going to be auctioned off. Xome also has a database of foreclosures and short sales.

4. REIT Mutual Funds & ETFs

If you’re looking for a way to invest in REITs without picking and choosing individual companies, you could consider investing in a REIT mutual fund or ETF. These are funds that hold a basket of REITs, which gives you exposure to several different properties.

The benefits of investing in REIT mutual funds and ETFs are that they offer diversification and can help mitigate some risks associated with investing in individual REITs.

My favorite ETF app is trading212. It makes it easy to invest in ETFs without having to go through a lot of paperwork. You can open an account and start investing with just a few clicks.

And if you’re not sure what ETFs to invest in, trading212 has a great selection of recommended funds.

5. Real Estate Crowdfunding

If you’re looking for a way to invest in real estate without coming up with a sizeable down payment, you could consider real estate crowdfunding.

Crowdfunding is where you pool your money with other investors to finance a property. These platforms are becoming extremely popular, and many top real estate apps offer this option.

This can be a great investment strategy if you’re just getting started in investment portfolios because it can require a low minimum investment.

One of my favorite platform for real estate crowdfunding is Fundrise. With its low minimum investment requirement, this platform offers a great way to get started in investment portfolios.

It’s also one of the most popular real estate crowdfunding apps out there, so you’re sure to find plenty of interesting deals.