Making money in real estate is one of the best ways to grow your wealth. However, you don’t have to limit yourself to just investing in properties that are used as homes or offices. There are many other types of alternative property investments out there that can help you make more money without having to put as much time and effort into managing them. Here’s an example of how you might include alternative investments in your portfolio.
Exchange Traded Funds
Exchange Traded Funds (ETFs). ETFs are a type of fund that holds assets such as stocks, bonds, or commodities. They can be traded on the stock market like stocks and bought and sold throughout the day. They’re also relatively inexpensive because they don’t require you to pay an investment advisor to manage your money, instead, you can do it yourself by purchasing ETFs through your online broker or financial adviser service (like Wealthfront). Alternative Property Investments: Real Estate Investment Trusts (REITs), Private Equity Real Estate Investments & Hedge Fund Real Estate Investments.
Real Estate Investment Trusts (REITs)
REITs are companies that own and operate income-producing real estate. They’re a good way to invest in real estate without having to deal with the management of the property. REITs can be traded on exchanges like stocks, so they provide liquidity and diversification benefits similar to other publicly traded securities.
In addition to the liquidity and diversification benefits, REITs have historically generated higher returns than other asset classes. This is because they’re required by law to pay out at least 90 percent of their taxable income as dividends. REITs are a good option for investors who want to invest in real estate but don’t have the time or expertise to manage the asset themselves. The broad exposure of REITs can also help diversify your portfolio against the risk of a single property.
Master Limited Partnerships (MLPs)
A Master Limited Partnership (MLP) is a publicly traded partnership that invests in infrastructure, such as pipelines or power plants. Because MLPs are taxed as partnerships instead of corporations, they’re required to pay out at least 90% of their profits each year. That makes them great vehicles for investors looking for income-producing investments that can also provide some growth potential over time.
While there aren’t many restrictions on who can invest in an MLP, the minimum investment is usually $10K-$25K per holding depending on which fund you choose and how much risk you want to take on with your portfolio overall.
Infrastructure Investment Trusts (InvITs)
An InvIT is a type of fund that invests in infrastructure projects. It’s listed on the stock exchange and can be traded like stocks. This means you can buy and sell it just like any other security, but there are also some drawbacks to consider. An InvIT can be used as an alternative property investment if you want to invest in real estate without having to deal with the construction process or management of an actual building or property yourself.
It can also be used as a way to invest in infrastructure projects, which can be attractive if you’re looking for something more stable than other types of investments. An InvIT is a type of fund that invests in infrastructure projects. It’s listed on the stock exchange and can be traded like stocks. This means you can buy and sell it just like any other security, but there are also some drawbacks to consider.
Diversify your investments and make money
Alternative Property Investments are a great way to diversify your investments and make more money. The first step to investing in alternative property is finding the right property that will give you the maximum returns. An example of this would be an apartment building that has been neglected but is located in a good area with easy access to transportation and schools. The next step would be buying it at an affordable price so that when you renovate it, there will be enough profit left over for yourself after paying off all debts and expenses related to owning this type of investment property (including taxes). Once this has been done successfully, then comes learning how best to manage these types of properties so as not only to minimize risk but also maximize profits through various methods such as raising rent prices every year according to inflation rates etcetera.
This is just a sample of the many alternative property investments you can make. The main thing to remember is that you want to diversify your portfolio, so it’s important not just to invest in one type of asset but many different types as well. This will help ensure that if one type fails (or even all), there will still be others that are performing well enough for investors not to lose money on their overall portfolio.