Ways to Invest in Real Estate Beyond Buying a House
George Van Dyke, an independent financial consultant in Towson, Maryland, advises his clients to use real estate investment trusts, EITS, and exchange-traded funds, ETFs, to diversify into real estate. The vehicles are fast and easy ways to get into different properties, geographical areas and real estate classes.
“With publicly traded securities you can remain liquid,” he says. “If you can’t tolerate the risk, you’re not forced to go and sell a physical piece of real estate, which could take months.”
It’s also relatively simple to limit risk by using a trailing stop loss order, which automatically sells an asset if it drops below a certain predetermined price.
“If the real estate investments we utilize go up for an extended period of time, it is possible to lock in years of gains,” Van Dyke says.
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