There are several different routes an investor can take when deciding to invest in real estate. In this presentation, Alexander Christodoulakis goes over some of those options and what is required of investors when investing in real estate.

1. REAL
ESTATE
I N V E S T I N G I N

2. REAL ESTATE INVESTMENTS
Real estate investments are one of the earliest forms of
investments and should be considered for any portfolio.
Real estate investing has different forms of transactions
and investments and usually has less volatility than bond
or equity markets.
It presents an opportunity for companies or individuals to
gain solid returns, but there is more to this brand of
investing than simply signing on the dotted line and
owning a property.

3. A Real Estate Investment Trust (REIT) is
when a corporation or group of
investors put together their money in a
pool to invest in a large property or
series of properties. One of the
positive characteristics of a REIT is the
fact that it allows stock market
investors to be involved in real estate
without directly purchasing a property
or having to manage it.
REAL ESTATE
INVESTMENT
TRUSTS

4. REAL ESTATE MUTUAL FUNDS
Investors of Real Estate Mutual Funds typically also
invest in REITs and stocks of real estate-related
companies. What makes Real Estate Mutual Funds a
great idea for investors is their excellent
diversification levels relative to the invested capital
levels. The diversification takes place among
different types of real estate investments strategies
and geographies.
As investors have different objectives and
expectations, real estate mutual funds provide at
reasonable cost access to a large range of assets
like different types of large commercial real estate
enterprises. Moreover, investors have all the standard
benefits that come with professional mutual fund
managers like having detailed access and analysis to
the investment strategy that is followed and the
different types of selected assets.

5. Aside from investing in real estate,
professionals also trade their properties
in order to make a profit. These
professionals will find properties they
believe they can quickly turn around and
sell at a higher markup. In order to be
successful in real estate trading, the
investor must have extensive knowledge
of the real estate industry in order to
proceed.
TRADING

6. RENTAL PROPERTIES
A popular real estate investment involves
purchasing a property with the intention of renting
it out to a tenant and eventually turning a profit.
Typically, the amount of rent on a unit like this is
based off the monthly costs of utilities and
mortgage amount so that the tenant is essentially
paying off the mortgage for the owner.
Investing in real estate to rent out requires a
commitment to the property for many years.
Throughout the life of the mortgage, you’ll likely
have to respond to problems that tenants come
across with the property when parts of the home
need to be repaired. Unlike many other types of
investments, buying real estate and renting it out
requires hard work and dedication on the owner’s
side, which may not appeal to an individual who is
already busy.

7. REAL ESTATE INVESTMENT GROUPS
For real estate investors who want to rent a property to tenants but don’t want to worry
about maintenance, repairs, and operation, real estate investment groups is an excellent
option. These groups are made up of a property management company who builds a
community of apartments and sells individual units to investors. While the investor paid for
the property, they are not responsible for handling maintenance requests, only the
company which operates the group. One positive to this real estate investing style is that
there will often be a clause in the contract that safeguards an investor’s monthly income
from the property, regardless of whether someone is renting the unit or not.