So what is real estate investing ?
Most people think real estate investing is going out and purchasing a property and doing something to it to make money. There’s something to it. It could be doing a fix, fixing it up, and selling it. That’s a fix and flip. Or just holding onto it and renting it out.
But real estate investing is a lot more than that.
There are other ways to get involved in real estate investing. And I use the term investing, but actually acquiring properties without putting out any money and doing something with that property is still investing in real estate.
You could also be a passive investor where you don’t even acquire the property, you’re just a lender to the person who’s managing the property.
Another way to be a real estate investor is by investing in financial instruments that are related to a property.
For example, being a private mortgage lender or investing in Real Estate Investment Trusts (REITS) or investing in a Mortgage Investment Corporation (MIC).
So there are a number of ways to invest in real estate that aren’t really what you would consider normal real estate investing. And it has to do with acquiring or just being involved with real estate as an investment opportunity.