Each of these investments provide a key way to make money in real estate without all the intensive management activities that are usually associated with real estate. There is no need to go through a large number of grinding and deal analysis to determine whether you can make a profit. There is no need to interact with the tenants. You do not need to know how to repair the electrical system or hire a professional for to do so on your behalf. You really do not need to have any skills or knowledge to make money in real estate. What you do need is a connection with someone else who knows these things.
If you can buy the stock, you can make money in real estate. The reason this is possible is that real estate investment trusts, or REITs may come into existence. REITs are basically bundles of properties that are managed professionally. Packages are offered for sale to the public and shares, just like any other mutual funds. There is always a risk factor in each investment. In this case, the risk is related to the management team. If they know very well how to buy and profitably rental, you will make money. As always do your due diligence before choosing a fund of this kind.
The second type of Hands off real estate investing is for you to become a private lender. The laws that govern this type of investment vary from state to state. It becomes your lender is simple. All you have to do is to lend money for the real estate investor who will sign a promissory note to you for the amount in addition to the generous interest rate. The loan is secured by the property that the investor is buying. This is usually a very safe investment. In general, there are some restrictions as to who can invest as a private lender. A note of caution here, make sure that you are dealing with a reputable investor who has the knowledge and experience to carry out this investment to fruition.
Third hands free investment style that I have for you is to rent the apartment again. This is a relatively new product in the market. Property you buy is generally a beach or resort property in some very desirable location. You retain full ownership of the right to property throughout the year. When you do not use the property, and the resort’s management team hires its own unit. In this case, the investment is similar to owning a single room in the hotel complex. And everything is done for you. Resort team management markets, rents, and maintains your property. What you get is cash flow from renting and owning a little piece of paradise.