Shiva Narayan, a Malaysian property investment guru and member of E World Holdings, shares some thoughts on how to find to start investing in property without having to purchase it.
There are a few ways to invest in property without the full responsibility of purchasing it. One of the main ways to do this is through ETFs, or rather an Exchange-traded fund. This a collection of bonds or stocks combined into one fund. There are real-estate geared ETFs that invest in office buildings, complexes and other major constructed buildings.
Another way to start investing in real estate is through mutual funds. These funds are quite often low in cost and some can be well-researched and backed by academics. REITs are another viable option to start the investing process. They allow investors to diversify their holdings based upon the nature and type of real estate class each REIT invests towards. It can give investors experience and exposure to the real estate process without the responsibility of managing or owning.
One of the most simple ways to be directly involved with the process and a form a relationship with the process is investing in businesses or companies who specialize in property management. There are many companies that can be invested in without operating as a REIT. Yet, the risk of investing in a single company is that there must be a trusting relationship between the investor and the management company.
If you are comfortable with your position as an investor, hire a direct property manager. This a great option for investors who want direct interaction with the property but leave all of the busy work to the property manager. They take care of building repairs, management of the individuals utilizing the property, and even take charge in discovering the next viable property investment.
Other viable options are available too from real estate notes to hard money loans. Money loans are also expected to have a great ROI. Hard loans are great because you still do not have to deal with the issues that arise with a property.
There are plenty of paths to take to begin your property investing journey. There are no wrong ways in doing it, it just is dependent on the amount of responsibility and risk you would like to take into this industry. It can be profitable but it takes experience and knowing what will work best for you and your investments. These loans are a direct loan to a real estate investor.