Real Estate Investing Is Easy With These 4 Modern Methods In 2022

You probably don't want to be a landlord if you've ever had one: Answering late-night phone calls about oversized bugs and clogged toilets does not appear to be the most glamorous job. But, when done correctly, real estate investing can be profitable. However, many new investors are unsure of where or how to invest in real estate. Some real estate investments do not necessitate being at the beck and call of a tenant.

Share on facebook
Share on twitter
Share on linkedin
Modern methods of real estate investment

Property ownership is not always required for real estate investments. There are numerous other opportunities for investors to reap the benefits of real estate appreciation without having to shoulder the ongoing responsibilities of building maintenance. Investors who want to go beyond the traditional sense of investing can do so across multiple locations, property sizes, and real estate classes. While these may serve as stepping stones to future property ownership, the returns from these investments may be compelling enough to deter you from purchasing a home altogether. 

Real estate investing is lucrative and it doesn’t require a significant amount of capital. While it is common to believe that the only way to invest in real estate is through direct property ownership, the truth is that numerous other options provide lucrative and consistent cash flow without the need to purchase a property and with less hassle.

But why do real estate investing?

More wealth has been created by the real estate industry than by any other industry. However, people are still hesitant to join the fray. Most people believe that they must start with some capital, but this is not always the case.

Real estate investing can be a great way to diversify a portfolio while also providing a hedge against market volatility. Because real estate is not directly correlated with the market, it can provide stability in a portfolio when stocks rise and fall. Many investment options like commercial real estate do not correlate with the financial markets, Thus, it safeguards your investment portfolio from economic fluctuations. CRE is a stable and physical asset, as opposed to other volatile investment products.

There are several advantages to real estate investing. It generates steady income flow, appreciates at pace with inflation, gives high return due to favorable leverage, and allows for equity development by reducing debt.

Investors have chosen real estate as a haven for their spare cash to achieve consistent returns that at the very least outperform inflation. Many people, however, are unsure how much money to invest and what options are available within their financial constraints.

Do not miss High Time To Add Stability To Your Investment Portfolio In The Age Of Frequent Equity Market Crashes.

So, what are the real estate investing methods for you in 2022?

  • REITs: REITs enable you to invest in real estate without owning and managing the actual property. They are also an excellent way to gain exposure to the real estate market without investing large sums of money, especially at today’s high prices. These entities, which invest in and own real estate and real estate-related securities through a tax-advantaged structure, can be a great way for new investors to get started. REITs are a good choice for stock market investors looking for consistent income. They provide investors with access to nonresidential ventures such as malls and office complexes that are otherwise inaccessible to ordinary investors. REITs, like stocks, can be purchased through a brokerage account and provide investors with access to high-quality real estate portfolios managed by experienced and highly qualified fund managers. REITs, in the end, give investors access to expensive real estate without having to pay the premium to buy it directly. REITs are known to provide a minimum annual return of 7-8 percent to small and middle-level investors.
  • Fractional Ownership: Have you ever dreamed of investing in that glitzy office building beside your apartment but cannot because you do not have deep pockets? Well, not anymore. You can now invest in a commercial real estate property valued at Rs. 30 crores with a minimum of Rs. 10 lacs through fractional ownership investment in office real estate. Several investors pool their resources to buy a premium office building. The expenses and profits associated with the property are also shared by the investors or co-owners. Rental income gets distributed to investors in proportion to their property investment. The capital gain realized at the sale is also divided proportionally among the investors. The property’s co-owners also earn rental returns ranging from 6% to 10% per year.

Do not miss Fractional Ownership in India: What Will Happen In The Next 5 Years?

  • Real Estate Crowdfunding: Crowdfunding, as defined by the foundational book “The Crowdfunding Bible,” is the practice of requesting the general public to donate money or starting capital to help support new companies. Concepts may be marketed directly to regular Internet users via this type of online fundraising, in which open calls to possible investors are put on websites alongside prospective investment possibilities. These individuals, who contribute to a pool of funds derived from others with similar interests, might give financial support for existing or potential real estate ventures. Such opportunities can take the shape of residential or commercial holdings and can entail either the creation of new housing, retail, or office space or a stake in an existing holding. In essence, real estate crowdfunding allows you to increase or expand your wealth while also starting in the world of property ownership and rental with a little initial investment.

Do not miss Real Estate Crowdfunding: Evaluate If Crowdfunding Is The Right Investment Option For You.

  • House Flipping: Property flipping is a Western notion in which an investor purchases an item – often real estate – and immediately sells it for a profit. The concept is well-known in Western nations, but it is still gaining traction in the Indian market. It is simple to flip properties. You either buy a home with the expectation of a speedy increase in the value of the property and sell it as soon as you earn your projected profit, or you buy a home and remodel it to improve the value of the house and then sell it for a profit. As a real estate flipper, you want to earn money. Property flippers frequently seek to sell discounted houses purchased in less than six months and reap profits. House flippers frequently do not invest in properties that are already in good condition. As a result, the property should possess the inherent worth required to earn extra returns with no changes, or they will remove the property from the competition. Another type of flipper earns money by purchasing low-cost houses and increasing value by remodeling them. It allows investors to afford more than one property.
  • Real estate investment groups (REIGs): REIGs are similar to tiny mutual funds that invest in residential units. If you wish to possess or own a residential unit but don’t want the headache of every homeowner, then a REIG may be the answer for you. A REIG company acquires or constructs apartment buildings. Also, they permit investors to buy these properties. At the same time, these investors also join the group. An investor has access to purchase one or more self-contained housing units. But, the REIG maintains all the apartments collectively through maintenance, advertisement of vacancies, and selection of tenants. The firm gets the rental income every month in return for doing these management services.

The Difference Between Direct Vs Indirect Real Estate Investing?

Direct real estate investments entail the ownership and management of properties by a landlord. Residential property is an excellent example of direct real estate investment. However, indirect real estate investments include investing in a trust or a company that holds and manages properties. REITs, commercial real estate fractional ownership, and real estate crowdfunding are some famous examples of indirect real estate investing. 


Do you want to invest in fractional ownership of commercial real estate and real estate crowdfunding?
Assetmonk is an investing platform based in Hyderabad that specializes in high-end real estate crowdfunding and fractional ownership opportunities in Hyderabad, Bangalore, and Chennai

Modern Methods of Real Estate Investing FAQ'S

The best strategy for real estate investments  are:

  • Fractional Ownership of the commercial real estate
  • Real estate Crowdfunding

 The three ways you can invest in real estate are:

  • Fractional Ownership of the commercial real estate
  • Real Estate Crowdfunding
  • Real Estate Investment Trusts (REITs)

Commercial real estate is the most profitable type of real estate.

Related Articles

istockphoto 155700839 612x612 1

Rental housing demand will increase in crucial micro markets

The real estate market has exploded in the post-pandemic era. The corporate market is increasing, increasing demand for commercial space and rental residences. According to industry statistics, in the second quarter of this year, Indian rental home searches climbed 84.4% year on year and 29.4% sequentially. Furthermore, total combined rental housing listings rose 3% quarter on quarter and 28.1% year on year throughout the 13 Indian cities covered. Do not miss The 18% GST on rent gets anticipated to harm the rental housing industry. But, what are the variables that will lead to the rental housing demand boom? Accessibility and cost-effectiveness: When it comes to renting a property, people primarily examine three factors: infrastructure, connection, and price. The property’s location, with ready infrastructure and decent connection, takes precedence over the size and price of the unit. Customers want a home in a prominent location that allows them to maintain a good work-life balance, with less commuting time, easier access to…

Read more
istockphoto 1393356971 612x612 1

REITs, New Age Instrument: Investing in Properties Without Actually Investing in One

Real estate investing always meant purchasing, owning, and managing an actual property. But, did you know that it can still be done without actually owning the property? Thanks to REITs, investors need only put their money into corporations that possess substantial portfolios of self-appreciating real estate assets in some of the world’s most desired locales. Welcome to the world of REITs where you can buy real estate without the inconvenience of owning the property altogether. Easy peasy lemon squeezy right? Real estate investment trusts are popular among investors who wish to buy real estate without the inconvenience of owning the property altogether. These investments, known as REITs, allow investors to deposit money into income-producing real estate. A REIT is best described as a simple way to own real estate without actually purchasing any property. Investors can acquire individual shares of a real estate investment trust, similar to stocks, which gives them little chunks of several properties. This protects them from…

Read more
istockphoto 1394977436 612x612 1

Commercial Real Estate Leases: Different Types and Which Is the Best?

Leasing commercial space is a significant financial commitment and requires commercial real estate leases. These leases can be intimidating, especially because they are a huge commitment that can be costly. However, they are not as difficult as many people believe. A commercial real estate lease, like most other legal transactions, should not be taken lightly. As a result, when renting commercial space for the first time, it is critical not only to thoroughly study the industry but also to have a good understanding of the many forms of commercial leases accessible in India. Also, read Commercial Real Estate Is Booming In 2022: Explore How You Can Also Profit Via This Alternative Investment. Here’s an explanation of the many forms of commercial real estate leases and what they imply for renters and landlords: Firstly, what are commercial real estate leases? Commercial leases, as opposed to residential leases, are an arrangement between a renter (company) and landlord that specifies the property only…

Read more
istockphoto 817688664 612x612 1

The Indian real estate market would be worth $1 billion by 2030: RBSA Advisors

According to RBSA Advisors, the real estate business gets expected to grow by 15% by 2030, reaching $1,000 billion. According to RBSA Advisors, the Indian real estate sector would grow at a 15% CAGR from $60 billion in 2010 to $1,000 billion by 2030, contributing 13% of the country’s GDP by 2025. The organized retail real estate industry get expected to rise by 28% to 82 million square feet by 2023. Per “The Outlook of the Real Estate Sector in India,” the Indian real estate sector is showing strong indications of recovery as the economy recovers from the pandemic. Also, read JLL reports Indian real estate garnered $943 million in investments worth in Q1 2022. Despite a little increase in prices and a slight increase in home loan interest rates, the real estate industry has thrived on good buyer enthusiasm. According to the poll, there is substantial demand for property in Delhi-NCR across all price levels. The entire increase in…

Read more
istockphoto 1394786542 612x612 1

Aspire to be A Top Commercial Real Estate Agent? Here are Some Critical Steps To Becoming One

Do you want to be a successful commercial real estate agent? The Indian real estate market is diversified but vibrant and competitive, particularly for commercial real estate agents. To build a successful niche, they must comprehend the shifting promotional circumstances of developers as well as customer preferences. Staying current and afloat in the market requires innovation and openness to new marketing concepts. Follow the steps below to be a top agent. Do you want to be a successful commercial real estate agent? If this is the case, the first question you must answer is whether you want to work in commercial or residential real estate. To be sure, because individuals are more likely to buy or lease a place to live rather than a location to operate a company, it is simpler to get into residential real estate – where there will always be more prospective clients and transactions. Commercial real estate, on the other hand, may attract a large…

Read more
istockphoto 1263914795 612x612 1

Real Estate Investments: The Hottest Alternative Investments You Do Not Want To Miss Out

One of the best ways to grow your money in the modern era is by making investments. Whether small or large, every investment has got the potential to be a profitable one. It wasn’t long ago that people only knew about the stock market as a primary investment method. But, this has changed pretty much with the arrival of better technologies for making investments and making profits out of them. The hottest topic in the domain of investments is the growing popularity of alternative investments such as real estate. The real estate industry has been in existence for a long time, but it has changed a lot from its original form. Better alternative investments are emerging in real estate, mostly due to innovations introduced by technical firms. There’s still much to learn about this, so don’t worry. We have explained everything about this trending topic in this blog post. Do not miss Aspire financial freedom. Find Out How Real Estate Investment…

Read more