The housing market has seen a rebound and rents have increased which is a great time to consider real estate investment. It’s a great method to diversify your portfolio from the risk of the stock market, but not everyone is ready for it. It is essential to have enough cash to cover unexpected expenses, whether you are investing in individual properties or a whole project.

Real estate investment trusts (REITs) are publicly traded companies that manage and own a portfolio of real estate assets. They pay out most of their earnings to shareholders through dividends. They are a great option for investors who want to diversify their portfolios through real property, but do not have the time or the resources to manage properties themselves.

Another option that investors are able to take advantage of is crowdfunding for real estate. It connects developers looking to finance large commercial projects with investors who are looking for lucrative returns. These investments may provide better returns than traditional bonds or stocks however, they require more work and a greater amount of liquidity from the investor.

Many homeowners utilize their home as an investment property by renting rooms or their entire home. This kind of passive income is a solid source of revenue however, it is also a risk that you could lose your home in foreclosure or have to deal with expensive repairs. You should think about this risk prior to deciding to dive into residential real estate investment.