How to Invest in Real Estate

There are many ways you can invest in real estate: let's explore.

There are a few main ways you can invest in real estate:

1๏ธโƒฃ Buying a property and renting it out to tenants -- people or businesses who pay you to occupy your property

This generates rental income and your property can also appreciate in value over time ๐Ÿ”‘

2๏ธโƒฃ Buying a property, renovating it, and then selling it for a profit.

This is known as "flipping" houses ๐Ÿ”จ

3๏ธโƒฃ Buying a property for yourself to live in.

When you buy a home and your homeโ€™s value increases over time, you get to build your wealth AND get a place to live ๐Ÿก

If it sounds like these options are out of reach since you actually need to buy a property, donโ€™t worry!

Thereโ€™s a way you can expose yourself to real estate investing right on Bloom ๐Ÿ˜ฒ

REITs (Real Estate Investment Trusts) are companies that own income-producing real estate.

Think of REITs like real estate ETFs, since they often own lots of different real estate! ๐Ÿข

Some REITs have become publicly traded companies, which means you can invest in them on Bloom!

For example, the REIT Invitation Homes is the biggest owner of single family homes in the US, with over 83,000 rental properties generating income ๐Ÿ’ผ

But no matter how you choose to invest in real estate, make sure to thoroughly research the market and understand what it is youโ€™re actually investing in! ๐Ÿ“š

Test your knowledge

What's the main way you make money as a landlord?

Choose an option

Flipping houses refers to:

Choose an option

REITs are:

Choose an option

Before investing in real estate, you should:

Choose an option

What's next?

Featured Lessons