A few years ago, a minor snow skiing accident revealed my lack of diversity regarding investing. The incident quickly made me realize that I was relying solely on one income and I need to diversify into real estate.
Real estate stocks can involve any publicly traded stock for a business that touches the real estate market in some shape, form, or fashion.
These can range anywhere from: – real estate brokers – technology companies – manufacturers – retailers – developers – financiers
Here are a few examples: – Zillow – Home Depot – Re/Max Holdings – CBRE Group – Toll Brothers
Investing in stocks is a straightforward process. This can be accomplished through any online brokerage account. A major advantage of investing in real estate stocks is that you don’t have to have as much money to get started as you would directly buying the physical property.
If you don’t understand an investment, then don’t put any money in until you do. As a stock’s definition is owning a small portion of a business, you should spend time learning about that business first.
A REIT, or real estate investment trust, is a company that owns, operates, or finances income-producing real estate. They can either be private or public, with the publicly traded REIT being the more popular of the two.