When it comes to investing some investors are more comfortable with tangible real estate rather than numbers on a screen. If you’re thinking of diversifying your portfolio with a little real estate, it could be worthwhile to find out more about this option.

Real estate investment offers distinct advantages like cash flow and potential appreciation. However, it’s important to remember that cash flow fluctuates drastically and the value of a property could increase or decrease due to a variety of factors.

An approach that is popular for beginners is the buy and hold zip-real-estate.com method which involves the purchase of the property to earn rental income as well as potential capital appreciation over time. This strategy is labor-intensive and requires you to fully research and vet possible investment opportunities. It’s also an intangible strategy, which means that you’ll have to find a new investment opportunity after the deal has been completed and your money has been refunded.

Another way to invest in real estate is to invest through REIT, also known as a real estate investment trust. These companies collect funds from shareholders to purchase and manage properties like apartment complexes, office buildings and strip malls, which can be used for rentals and long-term appreciation. REITs unlike individual real estate investments are traded publicly. They offer diversification to your portfolio by separating stocks and bonds.

Another method to begin real property investing is to become the landlord yourself. You can do this by renting traditional properties or by using new business apps and brokerages that allow you to purchase a portion of a home. This is typically less costly than buying a home and allows you to take advantage of the need for a tangible asset in your portfolio while retaining the degree of independence you want.