5 Tips and Tricks To Build Wealth Without Buying Real Estate

3. Invest in REITs

REITs (Real Estate Investment Trusts) offer a less risky alternative to directly owning or flipping real estate properties. They are essentially stocks of companies involved in real estate, including those that buy and sell properties and mortgage companies providing financing. As the value of these real estate or mortgage companies increases, so does the value of your investment in REITs. Essentially, these companies work on your behalf to grow your money. Additionally, REITs are mandated to distribute at least 90% of their taxable income annually as dividends, resulting in high dividend yields. This not only offers the potential for capital appreciation but also provides investors with extra income for further investment.