Did you know real estate has consistently outperformed the stock market since the turn of the new millennium?

If you’re looking to start investing in real estate, you’ve made a smart decision.

However, real estate investments aren’t created equal. Some have good returns and others can blow your money.

Continue reading to learn the various types of real estate investments that can earn you good money.

1. Rental Property

America is a nation of homeowners, but an increasing number of Americans are opting to rent. In fact, more American households are renting than at any point in the last 50 years!

As a prospective real estate investor, this is promising news. More people renting means the demand for rental property is high. It’s for this reason investing in rental units can turn out to be a profitable decision.

You could invest in apartments, single-family homes, or even vacation rentals. Just be sure to do extensive market research and find out the most in-demand properties in your preferred locations.

2. House Flipping

If you don’t have the patience to wait several years for a rental property to become profitable, you’ll love house flipping.

This type of real estate investing involves buying a house or property, fixing or upgrading it, and then selling at a profit–usually after a short time.

Even though more investors are getting into house flipping, a lot rides on your tact. To turn a good profit, you must buy low and sell high. This means hunting for properties whose owners are looking to dispose at a low price, and the property must be in an ideal neighborhood.

If you make a wrong move and buy a property in a bad location, you might not be able to sell it at a decent profit.

3. Develop a Condo Building

As the average family size shrinks, there’s a need for more Americans to downsize. It’s no wonder many millennials prefer condos over single-family homes and other property types.

Considering that millennials are now the largest living generation and their spending power keeps increasing, investing in a condo building can be a good moneymaker.

Once the development is ready, put your condos for sale and watch potential buyers start making inquiries!

Keep in mind that putting up a duplex or condo building is a capital intensive business, especially if you want to include luxury amenities.

4. Real Estate Investment Trusts (REITs)

Do you fancy investing in real estate but don’t want to do the dirty work of constructing or buying and selling of property? If yes, you should invest in REITs.

A REIT is a private or public company that own income-producing real estate, such as shopping malls, apartments, and office blocks. All you need to do is invest a certain amount of money in the company, after which you’ll earn a share of its income. The more money you invest, the higher your returns.

Make Money with These Types of Real Estate Investments

Real estate is one of the safest and least volatile markets to invest your money.

However, you’ve got to do your homework and find the best types of real estate investments. Lucky for you, we’ve already done the digging and fleshed out the investments that’ll make you money.

Explore our blog for more real estate investment insights.