When it is time to invest certain investors feel more comfortable with tangible real estate rather than numbers on screens. If you’re looking to diversify your portfolio, real estate might be a great option.

Investing in real estate offers many unique advantages, including cash flow and the possibility of appreciation. It’s important to consider that cash flow is unpredictable and the value of a home can fluctuate due to a variety of factors.

The buy and hold strategy is a popular one for beginners. It involves buying an investment property to earn rental income as well as potential capital appreciation. This is a time-consuming strategy that requires you to research and evaluate investments. It’s also a somewhat intangible strategy, which means that you’ll need to find a new investment opportunity once the deal has been completed and the money has been refunded.

Another option to invest in real estate is to use REIT, which is a real estate investment trust. These companies solicit funds from shareholders to purchase and manage properties such as office buildings, apartment complexes and strip malls to earn rentals and long-term appreciation. Unlike individual real estate investments REITs are publicly traded and offer some diversification to bonds and stocks in your portfolio.

You can also enter real estate investing by becoming your own landlord. This can be done through traditional rental properties or by making use of modern business apps and brokerages that allow the purchase of a portion of the property. This is typically less costly than purchasing a house and allows you to balance the desire for an actual asset in your portfolio, while retaining the level of detachment you desire.

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