Real estate is a powerful way to build equity and generate cash flow outside of the stock market.
How it Works: You can be a hands-on landlord or a completely passive investor.
Paths to Get Started:
Rental Properties: Buy a property (e.g., a single-family home, duplex) and rent it out. This provides monthly cash flow and long-term appreciation. Use a property management company to handle tenants and maintenance for a truly passive experience.
Real Estate Crowdfunding: Platforms like Fundrise or CrowdStreet allow you to invest smaller amounts in large commercial real estate projects (e.g., apartment complexes, warehouses) alongside other investors.
Time Commitment: Varies from minutes a month (crowdfunding) to a few hours (managing a property manager).
Potential Earnings: Crowdfunding targets ~8-12% annual returns. A well-chosen rental property can provide consistent monthly income after expenses.
Watch Out For: Large initial capital required for direct ownership, market risks, and bad tenants.