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Earning rental income doesn't always have to involve owning an entire house or property. There are several ways to earn rental income without being a full-time landlord. By owning fractions of real estate, you can take advantage of the benefits of owning property without the burden of full ownership.
These are 4 ways you can invest in Real Estate without building a house and with a fraction of the cost.
REITs are companies that own, operate, and finance real estate properties. They allow you to invest in a diverse portfolio of real estate assets, including office buildings, apartments, shopping centers, and more. REITs are TRADED ON THE STOCK MARKET, so you can easily buy and sell your shares. As a shareholder, you'll receive a portion of the profits generated from the properties, which can be paid out in the form of dividends.
Investing in a REIT is as good as buying the stocks of a company. The difference is that this company is one with different properties in its portfolio.
This method of investing in real estate is simple. It allows you to invest small amounts of money in specific real estate projects.
You can choose from a variety of projects, such as developing a new rental property, when the property is fully developed as sold, you'll receive a share of the profits generated from the property, according to your contribution to the project.
For example, if a building project consisting 6-units of 2-bedroom apartments costs 100million to build, and the cost is divided into 200 parts, that would give us 500,000 naira per share.
Investors can invest in the project by buying shares in the project. Investor A can own 1 share in the project with N500,000 ad investor B can own 5 shares in the project with 2.5million naira.
When the project is completed and sold, profit is shared to all investors according to their percentage contribution on the project.
Once the profit is shared, that is the end of the project.
You can find projects to crowdfund on PropTech platforms like Jointly.
On Jointly, this investment strategy is called Co-build and it allows you to invest and own shares in different types of real estate projects.
The difference between this and REITs is that with this method, you invest in a particular project and can exit immediately the project is delivered and sold, whereas with REITs, you are trading the stocks of the company, just like it is on the stock exchange.
This works like project crowdfunding, the difference is that with real estate co-ownership, you own a share of the property and can EARN RENT FROM THE PROPERTY FOR LIFE.
In other words, you buy a share of the property and for the rest of your life, you continue to earn rental income.
This method of investing in Real Estate allows anyone to invest in a variety of real estate assets with a fraction of the cost.
You can own shares in apartments, hotels, office complexes or any type of real estate and this ownership can be transferred, either to your next of kin or to anyone if you decide to sell them in future.
To take advantage of real estate co-owneship, you have to sign up on a proptech platform like Jointly, where you can have access to a variety of real estate investment opportunities.
Private real estate syndications involve a group of investors pooling their money together to buy and manage a specific property. As an investor, you'll receive a share of the profits generated from the property, which can be paid out in the form of dividends or returned capital.
By owning fractions of real estate, you can take advantage of the benefits of owning property without the burden of full ownership. At Jointly, we’ve made it easier for anyone to invest in Real Estate, starting with Nigeria
You don't have to wait until you can afford an entire property on your own. With just ₦500,000 or less, you can own shares in properties with other investors and start building wealth for yourself and your family.
Click here to sign up on Jointly today and start building wealth, one property at a time.
