A real estate agent from Billings, Montana, had the fright of her life when she encountered a intruder while showing a property to an out-of-state client during a video call recently.
“I have never experienced anything like this,” Alyssa Webb told NBC affiliate KULR-TV.
She was giving a tour of the home’s interior when she walked into a room and encountered the stranger and let out a scream.
“It was really terrifying to know someone was there the entire time I was in that house and they didn't try to leave or announce their presence and they were just hiding,” she said. “I didn't know what they were capable of, if they had a weapon, if they might have attacked me.”
For landlords, intruders are just one potential problem they might have to deal with when renting out property. To be successful requires finding reliable tenants, collecting rent and handling maintenance and repair requests out of pocket — it can be a very hands-on role.
If Webb’s ordeal makes your spine shiver and the trials and tribulations of being a landlord don’t appeal to you, here are two ways you can invest in real estate without all the hassle.
Real estate ETFs
If you’re looking for an easy way to invest in real estate without having to pick and choose which stocks to buy and sell, consider exchange-traded funds (ETFs). You can think of an ETF as a diversified portfolio of stocks.
As the name suggests, ETFs trade on major exchanges, making them convenient to buy and sell. Some ETFs passively track an index, while others are actively managed. They all charge a fee — referred to as the management expense ratio — in exchange for managing the fund.
Using a commission-free trading app called Robinhood, you can buy and sell ETFs — as well as stocks, options and cryptocurrencies — from companies around the world.
Robinhood offers a wide range of account types with no account minimums, making it easy for anyone to start investing in real estate ETFs for as little as $1.
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Crowdfunding
Crowdfunding refers to the practice of funding a project by raising small amounts of money from a large number of people. This can include real estate.
Through a crowdfunding platform, you can buy a percentage of physical real estate — from rental properties to commercial properties.
If you’d like to invest in the commercial sector, First National Realty Partners gives everyday investors access to institutional-quality commercial properties that are all anchored to major grocery chains, like Whole Foods and Walmart. That means they’ll continue to generate quarterly profits even when the economy is shaky.
Another option is EquityMultiple, a crowdfunding platform for accredited investors with a low minimum investment requirement of just $5,000, so you won’t need to break the bank to earn a steady stream of passive income.
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