How to Invest in Real Estate Without Buying Property
- Scott Sweeney
- Apr 30
- 3 min read
Real estate investing doesn’t always mean becoming a landlord or flipping houses. In fact, some of the most accessible and passive ways to build wealth through real estate don’t involve owning a physical property at all. If you’re looking to diversify your portfolio without taking on the risks and responsibilities of ownership, here are a few smart ways to invest in real estate—no property purchase required.
📈 1. Real Estate Investment Trusts (REITs)
What they are: REITs are companies that own or finance income-producing real estate across a variety of sectors—residential, commercial, industrial, and more.
How you invest: You can buy REIT shares on public stock exchanges, just like stocks.
Why it works:
Easy entry point with small investments
Highly liquid (buy and sell like stocks)
Offers regular dividends
Great for passive income seekers
Keep in mind: Publicly traded REITs are subject to market volatility.
💻 2. Real Estate Crowdfunding
What it is:Crowdfunding platforms allow investors to pool their money online and invest in real estate deals—like apartment buildings, shopping centers, or development projects.
Popular platforms:Fundrise, RealtyMogul, CrowdStreet, and others.
Benefits:
Lower entry cost than buying a full property
Access to commercial and high-end residential projects
Some offer monthly or quarterly dividends
Risks to consider:
Typically long-term investments
Less liquid than REITs
Platform fees may apply
📝 3. Note Investing
What it is:Instead of buying property, you buy the debt—aka the mortgage note. You become the lender and collect payments (including interest) from the borrower.
Why investors like it:
Passive monthly income
You don’t deal with tenants, repairs, or property management
If a borrower defaults, you can take over the property
Challenges:
Requires knowledge of how notes work
Risk if borrower stops paying
Not as accessible to beginners without guidance
⚖️ Which One Is Right for You?
Investment Type | Best For | Liquidity | Risk Level |
REITs | New investors, hands-off approach | High | Moderate |
Crowdfunding | Mid-level investors seeking higher returns | Medium | Medium-High |
Note Investing | Advanced investors looking for strong cash flow | Low | High |
Final Thoughts
You don’t need to buy and manage property to benefit from real estate’s wealth-building power. REITs, crowdfunding, and note investing each offer unique ways to tap into the market—often with lower costs and less stress. Whether you're looking for passive income or portfolio diversification, there’s a strategy to fit your goals.
Scott Sweeney
Your NorCal Realtor
M&M Real Estate
BRE Lic# 01938720
Cell: Call/Text 707-330-2324
About Scott Sweeney
SweeneySells
Full Time Realtor 13 Years +
Over 100 Families Served
Top 5% Producing Agent
Buying & Listing Specialist
Contract & Negotiation Ninja
CSUS Business & Marketing Graduate 2006
With quickly serving over a 100 families, Scott Sweeney has become a top 5% producing Realtor in the greater Sacramento area who has helped clients from the Bay Area to South Lake Tahoe. Scott has a Bachelor Of Science in Business Administration, with a concentration in Marketing from CSUS. His education, and extensive background in the hospitality, marketing, and real estate industries, have helped Scott to become one of the leading, and most sought after agents in the area.
Reach out to SweeneySells today, and take the first step towards your real estate goals!
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