Real estate investment strategies that can help you build the wealth

One of the easiest ways to get into real estate is to buy and keep a rental. Another popular strategy is to turn the properties.

However, there are several ways to invest in real estate.

Business Insider has spoken with investors who use less traditional strategies to achieve financial independence. Here are three.

1. Private money lift. If you wish to participate in the real estate space without buying and managing properties, an option is to lend capital to other investors.

It is a strategy that the financially independent couple Carl and Mindy Jensen use to continue to increase their net value. After spending years buying goods and making time of “living flips”, they appreciate how passive loans can be.

The way it works is that they will lend money from other real estate investors to rehabilitate a house, for example, and will gain interest on the loan. The conditions are determined by the lender and the borrower and vary from an agreement to the agreement. The Jensens said they were gaining between 10 and 12% of loans.

“Private loans generate such a good return that it is difficult to say:” No, we don’t want to have easy money. Let’s go and do another live flip “,” said Mindy to Bi.

2. Build-to-lent. Brannon Potts likes the idea of ​​having rentals, but it found it difficult to make the figures work in its region: “The resale market is a little more difficult to write and work financially.”

His solution is to build his rentals. He admitted that the strategy was “a little more niche” and takes time. He designs the layout and works with a manufacturer to give it life – a process that can take up to nine months for a multifamily property. “But I see a lot more financial reward at the moment than to do the side of resale.”

In March 2025, Potts at 10 doors finished and said it was on average $ 330 per month per door. This represents about $ 40,000 per year of relatively passive income, because its properties are new constructions and do not require much maintenance or attention. He expects to achieve financial independence once he has reached 20 doors, which he plans to do over the next five years and before being 60 years old.

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He earns more than a simple financial reward.

“I love building-being able to put my fingerprints on a property,” he said. “I really wanted to be proud of what we did so that our tenants become something wonderful in which they could live and, hopefully, taking better care because it is just a little more pleasant than the ordinary.”

3. Real estate syndication. With real estate syndication agreements, a group of investors pools their capital to buy a single property managed by the union.

The investor and a self-crew-based Millionaire based in New England Tess Warsmith has rentals, but it began to invest in syndications in 2023 and says that the strategy is delivered with unique advantages: it opens the door to greater investment opportunities and is much more passive than rental management.

“I consult the agreement and I assure myself that it is something that makes me feel good, and then when I invest the money, I am practical,” she said. “I am not involved in the daily decision -making of property. But as an investor, I benefit from investing in larger unit properties.”

The Jensens, who are in two syndication offers, also appreciate practical nature, but it can be difficult to predict your yields.

“The people who direct these union will tell you that they are expecting figures, and it is rarely precise,” said Carl. Keep in mind that the union “probably uses his best sunny day scenarios”.

That said: “Every syndication we have had in fact surpassed the original numbers.”