The average person can be uneasy about investing in real estate, especially if they’ve never done it. It turns out that investing in real estate can be pretty straightforward, especially when you have the right team helping you through. Below I outline a few ways anyone can invest in real estate, emphasizing real estate syndications.

1. Buying the property outright

Save 25% for the down payment + closing costs and buy the investment property. Choosing the right market and property management team can be a terrific investment. This investment does require you to be “hands on,” and you run the risk of a bad tenant, accident, or maintenance taking away cash flow.

2. Investing in real estate through the stock market

Buy real estate in the publicly traded stock market through a REIT or with Homebuilder Stocks. While the returns are diluted and subject to stock market risk, this can be an easy way to get started with some exposure to real estate.

3. Investing in a real estate syndication 

Most high-net-worth investors build wealth and protect their wealth by using syndications. Syndications are a “hands-off” way to give investors steady income and growth, asset/liability protection, potential tax benefits, and diversifying away from the stock market. 

A real estate syndication is when a sponsor and a group of investors share the risks and rewards of bigger deals or a more extensive portfolio than you can do on your own. The sponsor finds the properties after a lengthy research period, purchases them, and oversees their management (either personally or through a management company). 

Many high-profile investors have pointed to syndications as how they have the solid financial foundations that they do. If you’re interested in learning more about syndications, check out this interesting article that explains syndication a bit more in-depth. Or, even better, schedule a call with us to discuss our latest syndication deal and how you can expand your financial freedom through real estate syndications.