Investing in the best real estate options can not only help you in growing your wealth but seeking some great returns on your investment as well. Over the last 50 years, people have vigorously invested in the real estate market by making it a common investment vehicle. Although the gains offered by this market are huge, buying and owning real estate is a lot more complicated than investing in the bonds or stocks. Here are some other real estate options apart from just buying homes which can help you in increasing your earnings:

A Basic Rental Property

This is an investment which is as old as the land ownership itself. A person buys a property and rents it out to a tenant. It is the owner or the landlord who is accountable for all the taxes and the maintenance costs of the house. In most cases, the landlord charges enough rent to cover all these costs with ease. However, the most common strategy is to charge a nominal rent and cover the expenses until the mortgage has been paid. After the mortgage is completed, the rent turns into profit and the value of the property has also appreciated considerably making it more valuable than the amount of mortgage.

A Real Estate Investment Group

These groups are more like small mutual funds for rental properties. If you want to own a property but don’t want to face the troubles of being a landlord, a real estate investment group will prove to be the ultimate solution for you. A company will buy or build apartment blocks and the investors can buy them through the company. An investor can own one or more properties but all the management chores are done by the company including the maintenance, advertising the units, and interviewing the tenants. For all these services, the company charges a certain percentage of the rent.

Real Estate Trading

This is the most adventurous side of the real estate business. There is no landlord-tenant relationship in this one as the individuals buy a property with the intention of holding it for a limited period of time. After a few months, they hope to sell the property on a profit margin. In the real estate, the technique is known as ‘flipping properties’. It is based on targeting those properties which are considerably undervalued or are located in a hot market.

A Real Estate Investment Trust

A real estate investment trust (REIT) is formed when a corporation uses the money of the investors to buy and operate the income generating properties. These are bought and sold just like major exchanges on any other stock. It is up to the corporation to pay 90% of the tax to keep its status as a REIT.

These are some of the best real estate investment options. Although there are certain responsibilities involved in real estate but in the longer run, this is the most profit generating source of income.