Hands-Off: Obviously if you live thousands of miles from your rental property, you’re not going to be the one taking care of the day to day running of the property.Īnd even if your rental property is near your home, you may simply not want to be involved apart from earning the rental income. Location: If you live in a city with high real estate prices like New York or San Francisco, buying rental property might be out of reach, but online platforms allow investors to buy properties in lower cost of living areas. Turnkey rental property is a great investment for all of the reasons some other real estate investments are great but it has some unique advantages. Typically, you’ll have a property management team handling the daily operations, making it a hands-off, passive investment. In particular, we love turnkey rental property.Ī turnkey property is a piece of property that’s been rehabbed and is move-in ready. If you’ve been a listener or reader of LMM for a few years, you’ll know how much we love rental property as a form of passive income. Online or off, these are the best real estate investments for 2020. Thanks in part to the internet, we have many more options for real estate investing than ever before. Where Should I Invest My Real Estate Money? Real estate is considered an “alternative asset” and as such can provide stability during market dips. Some types of real estate investments offer a hedge against inflation because it’s a physical asset that can be monetized via rent. How much of your portfolio should be made up of real estate? There are differing opinions but a good rule of thumb is 5% but in “crisis periods” that percentage can be three or four times higher. There are only so many hours in the day and you can’t be at work for all of them. It’s important to find a way to divorce your time from your income, at least part of your income. And real estate investing has several advantages compared to some other investment opportunities. When you invest in real estate, you’re buying an income stream. Which of these best real estate investments appeals to you? Why Real Estate Investing Is the Best Real estate offers a slow, predictable rate of return over the long run and can be a great way to build long-term wealth.Īnother great thing about real estate investments is that there are so many levels of involvement from completely hands-off in the case of REITs (Real Estate Investment Trusts) to all-in in the case of flipping houses. Real estate is sometimes overlooked by investors, even though it’s a useful portfolio diversification tool. These are the best real estate investments for 2020.Ī lot of millennials forego making a real estate investment because it seems like something only older people do or only rich people do but there is a real estate investment out there for any (legal) age and (almost) any budget.Īnd real estate is an important part of a healthy portfolio. Whichever of those camps you fall into, real estate investing fits the bill. ![]() Or maybe you’re looking for a way to generate passive income. If you are invested in the stock market, you might be looking for a way to diversify your investments. But investing can be intimidating to some, a complex process with a learning curve. ![]() When many people think about investing, they think of the stock market.
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