According to Brad Zackson, co-founder and director of development for full-service real estate company Dynamic Star, what comes to mind when you think about investing in real estate? Your home is undoubtedly one, but there are a variety of other real estate investments that don’t always include physical structures. Let’s examine some of the popular real estate choices and the reasons Zackson thinks they are appropriate for you:

  • Housing is an excellent investment because real estate values have historically increased over time. However, as the COVID-19 epidemic overtook the country in the spring of 2020, various housing markets across the U.S. suffered a minor setback.
  • But this year, as individuals began to feel more secure in their surroundings, housing prices rose to record levels. Property that you rent to renters is referred to as a rental. Your property is rented out, and you get payment from the tenant. The funds you earn can be used to settle debts such as your mortgage, real estate taxes, and other bills.
  • According to Brad Zackson, you can benefit from the property’s value growth in addition to the income flow you receive from renting it out. This is one of the factors that attracts many people to real estate investing, particularly in rental houses.

Brad Zackson

Trusts that invest in real estate:

A particular kind of real estate fund called a real estate investment trust (REIT) pools investor money to buy and manage real estate. Due to their tax benefits, REITs have grown in popularity as a direct real estate investment substitute in recent years. Investors should expect to see larger returns on their investments because they are specifically exempt from corporate income taxes. Compared to other real estate investment categories, REITs are quite liquid. A relatively new type of real estate investment, real estate limited partnerships are now accessible in all 50 states