5 Ways to Invest In Real Estate Without Cleaning Toilets

Jeff Kikel • July 12, 2023

A person is holding a pair of keys with a house keychain in front of a house.

Real estate often emerges as one of the most lucrative prospects when considering investment options. But for many, the thought of being a landlord – dealing with property maintenance, unpredictable tenants, or cleaning toilets – is enough to discourage them. Thankfully, today’s savvy investors have multiple alternative routes to leverage the benefits of real estate investment without needing to get their hands dirty. From Real Estate Investment Trusts (REITs) to platforms like Groundfloor and Fundrise, here are five ways to get started in real estate investing without worrying about physical property management.

Real Estate Investment Trusts (REITs)

One of the most common ways to invest in real estate without the associated property management headaches is through Real Estate Investment Trusts (REITs). REITs are companies that own, operate or finance income-generating real estate. When you invest in a REIT, you're purchasing shares of a company that invests in real estate, not the property itself. REITs can be publicly traded or non-traded; each type comes with its own benefits and risks.

By law, REITs must distribute at least 90% of their taxable income to shareholders as dividends. This unique stipulation makes REITs a popular investment choice for those seeking consistent income streams. However, it's essential to understand that, like all investments, REITs also come with risks, and you must carefully research them before investing. Many REITs are publicly traded and can be accessed through a brokerage account.

Real Estate Crowdfunding with Groundfloor (www.groundfloor.com)

Groundfloor, an innovative real estate crowdfunding platform, offers an exciting way to invest in real estate without requiring extensive capital or hands-on management. Groundfloor primarily focuses on real estate loans for single-family fix-and-flip properties, allowing individual investors to get involved with as little as $10. This model is a win-win for both parties: borrowers get access to the funds they need for their real estate projects, and investors can earn substantial returns on their investments. Groundfloor leverages the power of the crowd, allowing multiple investors to fund a single loan, thereby spreading the risk.

Investing in eREITs with Fundrise (www.fundrise.com)

Fundrise is another platform that offers a unique spin on real estate investing. It provides access to "eREITs" — portfolios of real estate assets that the company manages. Like traditional REITs, eREITs pool funds from numerous investors to invest in various properties. However, Fundrise's eREITs offer lower fees and more transparency, making them a compelling choice for new and seasoned investors.

Investing in Fundrise exposes you to multiple properties across different geographic locations and property types, increasing the diversification of your portfolio. Plus, the minimum investment is quite low – starting at just $500 – making it an accessible platform for many.

Peer-to-Peer Lending

Peer-to-peer (P2P) lending platforms can be worthwhile for real estate investing. Through P2P lending, investors can fund real estate loans and earn interest when the loan is repaid. This form of investment offers the chance to make higher returns than traditional savings or investment accounts, though it also comes with higher risk. Investors must be prepared for potential loan defaults and the corresponding losses. Peerstreet (www.peerstreet.com) offers the opportunity to do this for as little as $1000 and can be set up as a self-directed IRA and funded with IRA assets.

Wholesaling Real Estate

Wholesaling is a real estate investment strategy where an investor or wholesaler signs a contract with a home seller, markets the home to potential buyers, and then assigns the contract to one of them. The wholesaler makes a profit from the difference between the contracted price with the seller and the amount paid by the buyer. This strategy requires real estate market knowledge but doesn't involve property management or significant financial investments.

We started our Real Estate investment company with this strategy and initially learned the techniques from Sal Shakir’s Youtube Channel (https://youtube.com/playlist?list=PLVsZfrePAvRh7du5fZg3QqhrmBzaQ8jn6). This playlist is how we started and then took his training program.

Another great Real Estate Wholesaling info source is Bigger Pockets (www.biggerpockets.com). Bigger Pockets is a repository of Real Estate Info and a place where people hang out online and discuss real estate.

While all these investment strategies offer lucrative potential, they also carry risks. Prospective investors should do their due diligence, carefully research each option, and consult a financial advisor before diving in. But with these tools at your disposal, there's no need for your dreams of real estate investment to be clouded by the thought of cleaning toilets – you can enjoy the financial freedom real estate investing offers right from your living room.

FreedomDayWealth.com is your go-to source for navigating the world of financial independence, whether you're a beginner investor or a seasoned pro. Keep an eye on our blog for more tips, strategies, and insights into making your money work for you, freeing you to live your best life.

Jeff Kikel is the President of Freedom Day Wealth Management LLC and the Founder of the Freedom Day Method. After reaching his own Freedom Day, a work-optional lifestyle, he has worked to help others achieve their Freedom. Jeff is the host of the Freedom Nation Podcast (www.Freedomnationpodcast.com), Co-Host of The Cents of Things on Youtube (www.centsofthings.com), and shares his thoughts about Freedom Day on his Freedom Day with Jeff Kikel YouTube Channel (https://www.youtube.com/channel/UC8Adi7-wvlZksbgHuIe8_nQ)

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