When most people start to dabble in these alternative investment options, they begin with single-family homes or go straight to looking at commercial spaces. However, apartment buildings are a great option for some people and there are many ways to start investing in them.
If you invest on your own, you get to keep all of the profits. However, this is a significant amount of work. At this point, this is not a passive income-producing real estate investment.
While the returns and risks aren’t as high as individual investments, both are still significant. Working with a partner may be a smart option for you if you have limited real estate experience or knowledge.
Services like Fundrise, Equity Multiple and DiversyFund all operate under this model. They help investors source properties for investing, manage them on a daily basis, find tenants, and eventually sell them to other investors.
Real estate funds primarily invest in real estate investment trusts (REITs) and real estate operating companies, but some invest directly in properties.