I
nvestors seek various opportunities to grow their wealth, including direct stock market investments and passive index funds. Some prefer to back entrepreneurs or invest in real estate, which can be lucrative but affected by interest rates. When interest rates fall, investors often turn to real estate, with 29% of Americans surveyed by Bankrate in 2022 naming it as a prime investment option for long-term money.

    Real estate investing offers several options, including becoming a landlord or buying and renovating properties to sell quickly. However, these paths require significant work and expenses. Becoming a landlord involves managing tenants and handling issues that arise, while flipping properties requires renovation skills and finding the right neighborhoods. Building equity in a home through ownership can create a nest egg for future use.

    Another option is investing in real estate investment trusts (REITs), which allow investors to own shares of companies that own commercial properties without directly managing physical assets. REITs often pay high dividends, making them popular retirement investments. Dividends can be reinvested to further grow wealth.