Real estate is one of the best long-term investments you can make.

While homeownership is a common starting point for many hopeful investors, there are a lot of types of real estate investments worth having.

There are four main categories of real estate investing:

  • Residential (buildings that house people)
  • Commercial (spaces in which businesses operate)
  • Raw land (undeveloped property)
  • Third-party (investments into crowdfunding deals, investment trusts, and so on)

Let's focus on residential real estate investing.

1. Peer-to-peer lending

Particularly if you’re interested in helping others, peer-to-peer lending can be an interesting option. This style of investing involves putting your money toward individuals or projects you really believe in, such as helping someone to buy a home or make major repairs to a property.

2. Crowdfunding

Similar to peer-to-peer lending, crowdfunding involves multiple people pitching in toward one cause. 

3. Real estate investment trusts (REITs)

You can look at a REIT as a way of niching down in real estate investing. Trust acts as a company that focuses on a specific type of income-producing real estate — such as hotels, apartment buildings, senior housing, and so on.

4. Fix-and-flip homes

Find a home in need of renovation, buy it for a low price, fix it up, make it look pretty, sell the property at a profit.

5. Short-term rentals

With platforms like Airbnb and Booking.com offering diverse alternatives to traditional hotel accommodations, maintaining a second (or third) property as a short-term holiday rental can be a lucrative investment.

6. Long-term rentals

Long-term rental properties are those with tenants who sign extended leases. Becoming a landlord is one of the most popular forms of real estate investing.

7. Rent-to-own lease options

While renting-to-own (RTO) isn’t always the best strategy for a buyer, if you’re the one with a home to sell, entering into a well-structured lease agreement that provides your tenant with an option to buy can serve as a type of real estate investment.

8. Buying and dividing the land

Requiring high levels of expertise, subdividing land involves purchasing large tracts of undeveloped land and then dividing it down into separately saleable parcels.

Real estate is an investment of money and time. Whether your goals are focused on the short-term, long-term, or as a healthy mix of both, there are numerous pathways into real estate investing. Click here to view available land in Naples.

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