Many New York residents know that investing in various types of real estate can turn into a significant source of income. However, when real estate investing comes to mind, it is common for people to think about having to purchase property, find individuals to rent or lease, or have to take many other steps to make their investments worthwhile. This approach is known as active investing, but passive investing may be a viable option for interested parties.
Passively investing in real estate commonly involves utilizing real estate investment trusts. Among the major types of these trusts is an equity REIT, which invests in commercial real estate ownership. A mortgage REIT applies investments to the mortgages financing properties, and a hybrid REIT invests in both equity and mortgages.
Investing in a REIT can help small investors get started by sharing ownership rather than having to jump right in with purchasing property on one's own. The profits of these trusts also pass through to investors as regular income. REITs can also allow individuals to start out investing in major commercial properties by investing small amounts rather than having to work their way up to being able to afford to purchase commercial property.
Whether active or passive, real estate investing can be complicated. For individuals in New York looking to get into this industry, it may prove wise to obtain assistance. Knowledgeable real estate attorneys can help individuals understand their investment options and what steps may help them make the most out of their investments. These legal professionals can also make sure that parties stay in compliance with the law on any investments they make.