15 Super-Easy Ways to Invest in Real Estate Right Now

The real estate space has been super volatile lately -- as have other areas of the market at large -- but that doesn't negate that this industry is still packed with compelling buying propositions that can contribute generous returns to a profitable portfolio for years.

As with any other asset, investing in this space requires the ability not only to research and understand the type of real estate you're buying but also to determine the amount of capital, appropriate level of risk, and time you're willing to put into it.

As you'll see, there are many ways to invest in real estate. Do your due diligence and make sure you find the way that works best for you and the money you're willing to put down. Let's look at 15 super-easy ways you can invest in real estate right now, whether you have a generous or modest amount of capital to put to work.

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If you want to invest in real estate without putting forth a tremendous outlay of time and money, crowdfunding could be a great way to get your feet wet while expanding your portfolio into numerous types of assets.

Real estate crowdfunding platforms vary widely in terms of the requirements investors must meet to join and the types of investments available. Minimum investment requirements can be as low as $100 and climb to $30,000 or more. Often, real estate crowdfunding programs enable you to invest in everything from individual properties and real estate-backed loans to real estate development projects.

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If you want to invest in real estate, sometimes you don't have to look farther than your own backyard. There are many ways to “house hack.” A common approach is to buy a multifamily residence and rent out part of it, using that income to cover a portion or all of your regular living costs. Another way to approach house hacking is to rent out a spare room or space in your existing home.

Turnkey properties typically require a higher investment simply because they don't require much (if any) work or upgrades to be move-in ready. Of course, if you buy a true turnkey property, you can put it to work right away as a vacation property or long-term rental, even as your home.

Many people purchase a turnkey property to rent it out to generate consistent, semi-passive income. Others may decide to move into a turnkey property and gain a more gradual return on their investment by building equity in their home.

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Real estate investment funds are another fantastic way to dip your toe into this industry, and you don't need to buy a physical property to participate. Options like real estate mutual funds, real estate index funds, or real estate exchange-traded funds allow you to branch out your portfolio with a single investment.

These funds tend to invest in a wide pool of assets, ranging from real estate investment trusts (REITs) to large public companies involved in the real estate industry.

Investing in real estate is far more nuanced than simply choosing between commercial or residential properties or a pool of real estate assets through an approach like crowdfunding or investment funds.

You can also put your money into individual stocks that are directly or indirectly connected to the real estate industry. These include everything from iBuying platforms and real estate brokerages to companies directly supporting operations across the real estate sector, like home construction and home improvement stocks.

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If you like the idea of partnering up with fellow investors to put your money into the real estate that interests you most but without supplying all the capital yourself, a real estate investment group might be worth considering.

A real estate investment group is exactly what it sounds like. It's a group of individual investors who combine their capital and energies to invest in real estate assets. This could be anything from mortgages to residential real estate projects.

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There's no denying it's been a volatile year for homebuilders, as supply chain constraints and labor shortages continue to impact companies in this space. However, if you're investing in real estate for the long term, there are still compelling opportunities; for instance, luxury homebuilders and companies specializing in the construction of healthcare and assisted living facilities.

There are certainly ways to enter into long-standing, profitable real estate partnerships without joining a large investor group. If you have a business partner to team up with on real estate transactions, you can decide how to divide the responsibilities in a way that works for both of you.

For example, you and your partner could decide to buy and flip houses together and split the property management responsibilities. On the other hand, one of you could be more actively involved in the day-to-day machinations of these transactions while the other remains a passive partner.

If you want to invest in commercial real estate stocks, you have no shortage of options. Commercial real estate encompasses many different properties to pick from according to your investment preferences and risk tolerance. We're talking about everything from data centers, hotels, and industrial complexes to warehouses, retail stores, and office spaces.

ALSO READ: Home Price Gains Are Slowing -- But Don't Rush to Buy a Home Just Yet

Residential properties are what many people think of when they talk about real estate investing. But there is a multitude of ways to approach residential real estate investing.

Of course, the traditional approach is to buy a physical property to rent out or flip and sell. You can invest in residential real estate stocks to gain portfolio exposure to properties like apartment communities and single-family homes. You may also choose to invest in residential real estate with a partner or several other investors, sharing in the potential risks and the profits.

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If both residential and commercial real estate appeals to you, investing in mixed-use communities is a way to build your portfolio around both types and capitalize on a growing trend.

Mixed-used communities -- featuring residential properties (e.g., apartments) and commercial properties (e.g., grocery stores, coffee shops, offices, and retail spaces) -- are gaining popularity among buyers and renters.

These mixed-use communities are designed to offer residents a certain ease of accessibility for daily life. They are centered around the idea that you can do everything from your job to regular errands to recreational activities in the same area without making a long and draining commute.

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While not necessarily the first option that comes to mind when you think about investing in real estate, farmland may appeal to investors with more capital to spend and a fairly long investment horizon. One way to do this is to invest in physical farmland that you can rent out in a multi-year cropland lease.

Farmland REITs are another way to invest in this type of asset without putting down money on a parcel of land while diversifying into everything from packaging centers to annual crops or farm loans.

A lesser-known way among many real estate investors to generate consistent income from real estate is to purchase mortgage notes. When you invest in mortgage notes, you essentially become the lender in lieu of the institution that originally lent the money to the borrower.

You can purchase mortgage notes in several ways, including buying them directly from the bank, on the secondary mortgage market, or on mortgage note investing marketplaces.

If investing in this asset type sounds good, but you don't want to purchase the notes directly, mortgage REITs may be worth considering. By investing in mortgage REITs, you can invest in a pool of mortgages or mortgage-backed securities without becoming the actual lender.

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REITs are a go-to for many real estate investors, and with good reason. REITs allow you to invest in baskets of real estate investments that could include timberland, apartment complexes, hospitals, and self-storage facilities. This means you can diversify more quickly as you build your real estate portfolio.

REITs are very easy to invest in, as you can buy and sell them through your regular brokerage account just as you would stocks or bonds. REITs are also required to pay at least 90% of their taxable income out as dividends, which boosts your potential to earn consistent passive income in addition to share price returns.

Here's a relative newcomer to the real estate investing world. In the age of the metaverse, some investors are turning to digital real estate as an asset to buy and hold for the long term. Buying virtual land in the metaverse isn't for everyone. It's important to carefully research and understand what you're investing in -- just as you would any other real estate asset -- before putting your capital to work.

According to Brand Essence Market Research estimates, the metaverse real estate market is on track to expand at a compound annual growth rate of more than 31% between now and 2028. For risk-tolerant investors, investing in digital real estate may be an intriguing option as a smaller slice of a well-diversified portfolio.

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Presented by Motley Fool Stock Advisor

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If you're worried that now may not be the best time to invest in real estate, it's important to take a step back and consider the bigger picture. While factors like rising interest rates and fears of a housing market crash persist, real estate is an extremely broad asset class. Different market sectors will respond in varying degrees to these dynamics in the months ahead.

For individuals who have a multi-year investment horizon and are willing to ride out the near-term volatility, real estate is still a compelling industry to consider for your portfolio and can generate favorable returns over the long run.

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