Top Ways To Invest In Healthcare Real Estate
Summary
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Healthcare real estate is one of the
smartest investments on the market.
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Crowd-funding, REITs, Private Equity Funds, and ETFs are all great
options for healthcare investment.
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Demographics show investments emphasizing senior housing
may offer a more consistent outlook.
Investing in healthcare real estate is one of the smartest moves
investors can make today. That means even despite the pending bubble burst due
for our economy, the healthcare real estate sector is likely to remain strong.
Crowd-funding
For those looking for the feel of a direct investment—without
the networking and high capital threshold—online crowd-funding platforms are
the easiest bet.
They generally have a low investment minimum (think $10,000 to
$25,000) and allow investors to pick from a wide variety of specific investment
opportunities, for instance a medical office building in Dallas, a memory care
unit in Pittsburgh, a hospital in Seattle, or a mix of all three.
Private Equity Funds
Private equity funds work
similarly to crowd-funding, but with higher investment minimums and an off-line
investment platform.
Because they are generally smaller and managed offline, you may
find more personal involvement from the fund manager, and greater communication
about specific project development throughout your investment.
Real Estate Investment Trusts (REITs)
REITs offer a mix of traditional and alternative investment,
allowing investors to enjoy the returns of real estate while operating within
the confines of the trading market.
One other consideration: unlike private equity and crowd funding
projects, most REITs exist as landlords for existing, operating facilities. For
instance, the average senior housing facility owned by the average healthcare
REIT is 18 years, meaning the facilities are
not always the most highly profitable or up-to-date.
Exchange Traded Funds (ETFs)
ETFs like the Long-Term
Care ETF are a hybrid of private equity and
REITs—forming a portfolio of different healthcare REIT investments.
ETFs would be good for those interested in highly diversifying their
investment in
healthcare. However, ETFs could also be considered the furthest removed from
the concept of direct real estate investment.
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