How to Invest in United States Real Estate
There are a number of ways to invest in United States real estate, including purchasing residential or commercial real estate and renting the properties for income, but the easiest way to invest in U.S. real estate is by purchasing shares in a real estate investment trust (REIT). REITs are investment vehicles that operate similarly to mutual funds in that you buy and sell shares (and the price of the shares varies based on the performance of the underlying investments), but the investments are in real estate, not stock. Most REITs invest in a specific area or aspect of real estate, as in residential or commercial real estate, or in resort properties or in the real estate of a particular country or area (Europe or South America, for example).
Other People Are Reading
Instructions
-
-
1
Open an account with a stock broker like Fidelity, TDAmeritrade or Charles Schwab. The entire process can be dealt with online, from filling out the application to an electronic funds transfer to fund the account. Accounts can usually be opened with a minimum deposit as small as $250 to $500, and it usually takes two to five days for the deposited funds to appear in your account.
-
2
Research REITS that invest in U.S. real estate. The Research section of your brokerage's website is a good place to start, but there are many other resources regarding REIT history and performance available online and at your local library or bookstore.
-
-
3
Place an order with your brokerage to buy shares in the REIT(s) you have researched. You can sell your shares at any time, but most investors have at least a one-to-two-year investment horizon when they invest in REITs.
-
1
