Creative Ways to Invest in Real Estate in 2023: Non-Traditional Strategies to Consider

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Investing in real estate can be a smart way to build wealth, but it doesn’t always have to involve buying and renting out properties. With the evolving real estate market and new opportunities emerging, there are now more creative and non-traditional ways to invest in real estate in 2023.

To help you explore these options, we’ve compiled insights and advice from real estate experts and 5 sources on innovative strategies to consider. Should you be ready to invest in one of these types of strategies, or if you’re thinking of more traditional forms of investment, you should definitely be considering real estate financing. And you are at the best place to find it. At REI News, our specialists match investors with affordable, reliable lenders. Talk to us today to discover your ideal real estate loan opportunities.

 

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Table Of Content:

  1. Become a Real Estate “Bird Dog”
  2. Explore Crowdfunding
  3. Invest in REITs
  4. Participate in Real Estate Syndication
  5. Invest in Parking Lots
  6. Invest In Real Estate Notes
  7. Consider a Rent-To-Own Investment

 

Non-Traditional Ways To Invest In Real Estate In 2023

  1. Become a Real Estate “Bird Dog”

In the hunting world, bird dogs are crucial to the success of the hunters they serve, pointing out prey to their human counterparts. In real estate, a bird dog scouts properties for real estate investors, earning a commission for their services. As NASDAQ suggests, “This method requires time and effort to find good deals, but can be lucrative if done right.” If you have a knack for finding diamonds in the rough, this could be a good strategy for you.

  1. Explore Crowdfunding

Crowdfunding is a popular way for people to pool their money to fund various ventures, including real estate. Real estate crowdfunding platforms like Fundrise, Roofstock, and Groundfloor allow individuals to invest in real estate projects with smaller amounts of money, making it a more accessible option for investors. As Business Insider notes, “Crowdfunding can be an affordable way to invest in real estate, with lower investment minimums and fees than traditional private equity real estate funds.” Crowdfunding is getting increasingly popular as more first-time investors and ones looking to enter the market, so get on board now.

 

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  1. Invest in REIT

Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-producing real estate properties. Investors can buy shares in these companies, earning a share of the income generated by the properties they own. REITs offer investors diversification, liquidity, and the potential for higher returns than traditional stocks or bonds. As a real estate expert from Forbes points out, “REITs offer a simpler way to invest in real estate and offer a degree of diversification not available in traditional real estate investing.”

  1. Participate in Real Estate Syndication

Real estate syndication involves pooling together money from multiple investors to purchase and manage large commercial properties or apartment complexes. As Investment Firms notes, “Real estate syndication can be very good, and extremely profitable, if done correctly. Finding the right deal can generate great passive income for the investors, and the sponsor can also earn a healthy commission.” Syndication deals can offer investors high potential returns but also have higher risks.

  1. Invest in Parking Lots

Purchasing a parking lot may not seem like an obvious investment opportunity, but it is a non-traditional way to invest in real estate in 2023. Due recommends investing in a parking lot as it is a low-maintenance investment with a low risk of vacancy. Furthermore, as urban areas continue to grow, parking becomes increasingly scarce, making parking lots a valuable commodity.

  1. Invest In Real Estate Notes

Investing in real estate notes is a non-traditional way to invest in real estate in 2023. According to NuWire Investor, investing in real estate notes is when “a lender chooses to sell mortgage notes to investors willing to buy them. The investors then start collecting the loan repayment and interest from the borrower. This means that when you invest in real estate notes, you purchase debt and become the new lender.” You would collect the monthly mortgage payments and interest as the note holder. Investing in real estate notes is a low-risk investment as the property secures the mortgage.

  1. Consider a Rent-To-Own Investment

In this arrangement, as an investor, you would rent a property from a seller, with the understanding that at the end of the lease period, you would be able to own the property. This can be an attractive and more affordable way for investors to purchase properties as you would technically be paying monthly installments (via rent) to own the property after a period of time. Your rental fee would likely be significantly higher than others in your area, but consider it as paying off a mortgage, and it looks more attractive. As a property owner, it can be a way to secure a desired price, with the caveat that the money will be paid in installments, and you have to play landlord for some time. However, this can be a good strategy for sellers to sell a property that isn’t moving without discounting the price.

 

Should you be stuck finding your next real estate investment deal, give some of these less mainstream options a glance. As most real estate investors might typically overlook these, it can be an excellent way to find deals and make healthy returns on your investment.

And when you’ve made the call to invest in whichever form of real estate, look no further than our team at REI News. Our team works with a range of affordable, trusted lenders in the industry who can find you the most appropriate deals for your investment ambitions. Talk to us today!

 

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FAQ

 

Q: What are some non-traditional ways to invest in real estate in 2023?

A:Some non-traditional ways to invest in real estate in 2023 include becoming a real estate “bird dog,” exploring crowdfunding, investing in REITs, purchasing parking lots, and participating in real estate syndication.

Q: What is a real estate bird dog?

A: A real estate bird dog is someone who searches for potential investment properties and brings them to an investor in exchange for a fee. This can be a great way to get started in real estate investing without putting up a lot of money upfront.

Q: What is crowdfunding in real estate investing?

A: Crowdfunding is a way for multiple investors to pool their money together to invest in a real estate project. This can be done through online platforms that connect investors with developers or property owners. Investors can typically invest smaller amounts of money and spread their risk across multiple projects.

Q: What are REITs?

A: REITs (real estate investment trusts) are companies that own and manage income-generating real estate assets such as office buildings, apartments, and shopping centers. Investing in REITs can provide real estate exposure without needing to own and manage properties directly.

Q: How can I invest in parking lots?

A: Investing in parking lots can be a unique way to invest in real estate. You can purchase a parking lot or partner with someone who already owns one. This can be a good investment in areas with high demand for parking, such as urban areas or near popular tourist destinations.

Q: What are rent-to-own arrangements in real estate?

A: Rent-to-own arrangements allow tenants to rent a property with the option to buy it later. This can be a good way for tenants to build up their credit and save money for a down payment while living in the property they eventually want to buy.

 

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