How to Invest in Real Estate Without Being a Landlord

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Working as a landlord can be daunting task. What if you could invest in real estate without being one? Read this article and learn more.

landlord

If you are wanting to enter the world of real estate investment, then you will know that it can be intimidating. There are so many ways to invest, all with varying degrees of cost and risk. You may also think like so many that the only real way to properly invest without experience and prior knowledge is to be a landlord. Well, the good news is that this is not the case.

What is a landlord, and how do they make money?

If you have rented in the past, then you would have encountered a landlord yourself. The landlord is the owner of the property that you are renting, and they accept your rent checks. It may seem like a perfect investment option. They sit back and get paid for being the owner of a rental property. While this is true and rental income is how they make their money, there is a lot of work behind the scenes.

Pros and cons of being a landlord

If you are wanting to invest in real estate and are considering becoming a landlord, you will need to consider the pros and cons. These will of course be dependent on the type of property that you own and the location.

Pros

Cons

As can be seen, there are both many pros and cons of being a landlord, and it would not suit everyone. While the pros can be beneficial and are mostly financial, the cons can be awfully bad if not managed properly. The consequences of mismanaging as a landlord can be more than losing money. It can mean losing your property or even getting in trouble with the law.

What are other ways of investing in real estate?

If you have decided that being a landlord is not the path for you, then you will want to look at some common alternatives for investing. The best choice for you will of course depend on your financial position, your personal preference, and how much time and effort you are willing to devote.

Some common investment strategies that do not involve being a landlord are mentioned by Forbes as being the following:

How to invest in real estate through crowdfunding

Coming up with the capital required to start your investment can be one of the bigger battles, and crowdfunding is one way to gain access to funding. Investopedia describes crowdfunding for real estate as a new path for investors, but one that is worth considering. If you are wanting to invest big but do not have the resources needed, the crowdsourcing is a good way to source investors. You can use a variety of sources, from social media to people you know and even through crowdfunding websites like iFundng.

Once you have found your fellow investors, you will work together to find an investment. This will allow you gain access to markets that would have been pout of your reach on your own.

Conclusion

While many people experience great success as a landlord, it is not for everyone. And there are so many alternatives when it comes to investing in real estate. If you are not comfortable with the idea of someone living in your property, or if you think that the role of landlord just does not suit you, then you will be glad to know of all the different ways you can invest.

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About the AuthorCharles at infoSpike

Charles is the founder of infoSpike.com. His real estate investing experience started in 2004 and he is currently focused on rental property projects. He enjoys learning about real estate investing, personal finance, and marketing. Read more about Charles here.

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