How to Invest in Real Estate: 5 Top Strategies

There are many ways to diversify your portfolio by investing in real estate, from owning physical property to online crowd-funding platforms.

Arielle O'Shea
Lead Assigning Editor | Retirement planning, investment management, investment accounts

Arielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for over 15 years, and was a senior writer and spokesperson at NerdWallet before becoming an assigning editor. Previously, she was a researcher and reporter for leading personal finance journalist and author Jean Chatzky, a role that included developing financial education programs, interviewing subject matter experts and helping to produce television and radio segments. Arielle has appeared on the "Today" show, NBC News and ABC's "World News Tonight," and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. She is based in Charlottesville, Virginia.

Michael Randall
Certified Financial Planner®

Michael Randall, CFP®, EA is a senior wealth advisor at Myers Financial Group, a fee-only fiduciary wealth management firm based in San Diego, California. Michael is passionate about investment advice, wealth management, and tax planning. Prior to his time at Myers Financial Group, Michael worked as a financial advisor at a $4B wealth management firm with offices along the West Coast. Michael earned an undergraduate degree in economics at the University of California, Berkeley. He volunteers as a University of California, Berkeley alumni ambassador. Michael is a certified financial planner and an IRS enrolled agent.

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• REITs and real estate platforms are two ways to invest in real estate without owning physical property.
• REITs are securities you purchase through a brokerage account, similar to investing in stocks.
• Online real estate platforms connect investors to real estate projects.
• Investing in real estate directly can be more lucrative, but it requires more time and often more cash flow.

Buying a property to rent out is one of the most common ways to invest in real estate. But if you’ve ever had a landlord, you probably don't dream of being one. Fielding calls about oversized bugs and overflowing toilets doesn’t seem like the most glamorous job.

Understandably, many investors — especially beginners to real estate — don’t know about other options. But in reality, many of the best real estate investments don’t require showing up at a tenant’s every beck and call. Done right, real estate investing can be lucrative, help diversify your existing investment portfolio and eventually provide a stream of passive income .

Here are some of the best ways to make money in real estate, ranging from low-maintenance to high-maintenance.