Real estate investing has long been seen as a wealth multiplier reserved for people with substantial down payments, but that perception no longer holds. Over the past decade, new platforms and strategies have opened real estate ownership to people with minimal or zero capital to deploy, fundamentally changing who gets to build wealth through property.

The mechanics of no-money real estate investing fall into a few distinct categories, each with its own leverage, risk profile, and entry point. Understanding what “no money” actually means in each context is the first step toward choosing the right approach for your situation.

What No-Money Investing Really Means

When investors talk about real estate investing with no money, they typically mean using other people’s capital, borrowed funds, or equity strategies to avoid putting personal cash into a deal.

This is not the same as being issued a property free of charge.

Instead, you are deploying leverage, partnerships, or a platform’s infrastructure to gain exposure to real estate returns without a personal down payment.

The trade-off is straightforward: you either give up a portion of returns to partners or platform operators, pay ongoing fees, or accept a smaller ownership stake in exchange for zero upfront capital.

House Hacking and Seller Financing

The oldest no-money strategy is house hacking, where you purchase a multi-unit property with a government-backed mortgage, live in one unit as your primary residence, and rent out the others.

Many FHA loans require only 3.5% down, which for a four-unit property can be offset entirely by tenant rent.

To make the math work, you need a property where rental income covers the mortgage, insurance, taxes, and maintenance, with your occupancy covering the 3.5% down payment and closing costs.

Seller financing is a parallel path: you negotiate directly with the property owner to carry the mortgage themselves, sometimes with zero down payment and a deferred closing period that lets you refinance once the property appreciates.

Both strategies require credit, proof of income, and the ability to qualify for a mortgage, but they sidestep the capital barrier.

Real Estate Investment Trusts

A REIT is a company that owns, operates, or finances income-producing real estate across office, retail, residential, and industrial sectors.

Unlike direct property ownership, REITs trade on stock exchanges and require no down payment, no tenant management, and no maintenance.

You can open a brokerage account and buy REIT shares with as little as the cost of a single share, typically between $20 and $100 depending on the fund.

The downside is that REITs are pass-through vehicles: they are required by law to distribute 90% of taxable income to shareholders, meaning much of your return comes as ordinary income rather than capital gains.

We’ve compared the mechanics of REITs to direct property ownership, including tax treatment and leverage, in our breakdown of real estate vs. stocks.

Crowdfunding and Fractional Ownership

Real estate crowdfunding platforms pool capital from many investors to purchase or develop properties, then distribute returns based on ownership stakes.

Fractional ownership platforms go a step further, breaking down individual properties into small slices that can be purchased with $100 to $1,000.

Both models eliminate the need for a down payment, property management experience, or even a mortgage application.

The platforms handle underwriting, tenant placement, maintenance, and legal work, and you receive your share of rent and eventual sale proceeds.

Arrived Homes is one example of a fractional ownership platform focused on residential rental properties, allowing you to invest with as little as $100 per property.

The fees can be steep: expect 20% to 40% of profits going to the platform operator and sponsors, plus annual management fees.

The post How to Invest in Real Estate With No Money by Alison Plaut appeared first on Benzinga. Visit Benzinga to get more great content like this.

SpaceX begins trading on the Nasdaq today under the ticker SPCX, and retail investors are part of the largest IPO in history, with the company raising nearly $75 billion at a roughly $1.75 trillion valuation.

Moments like this send thousands of first-time investors searching for the same answer: how do you actually buy a stock?

The good news is that the process takes less time than ordering groceries online, and you can start with as little as $1.

How to Buy Stocks

Buying a stock takes three steps: open a brokerage account, deposit money into it, and place an order for the shares you want.

A brokerage account works like a bank account built for investing, and opening one online typically takes 10 to 15 minutes.

Most major U.S. brokerages now charge zero commission on stock and exchange-traded fund trades, so the main costs of investing are the prices of the shares themselves.

If you want help picking a platform, Benzinga’s guide to the best stock brokers for beginners compares the top options on fees, tools, and ease of use.

Open and Fund a Brokerage Account

To open an account, you will need your Social Security number, a government-issued ID, and basic employment information.

Brokerages are required to collect this under federal know-your-customer rules, so every legitimate platform will ask for it.

Once the account is approved, link a bank account and transfer money.

Many brokerages make a portion of your deposit available to trade instantly, while the full transfer usually clears within one to three business days.

There is no required minimum at most platforms, so $25 or $50 is enough to begin.

Cash and securities in your account are protected up to $500,000, including a $250,000 limit for cash, if the brokerage fails, under coverage from the Securities Investor Protection Corporation.

That protection covers brokerage failure, not investment losses, which remain yours to bear.

Choose What You Want to Buy

Every public company trades under a ticker symbol, such as AAPL for Apple or MSFT for Microsoft.

Before buying, look at the basics: what the company sells, whether revenue is growing, and how the stock is valued relative to earnings.

Many beginners start with broad index funds instead of individual companies, since one fund can hold hundreds of stocks at once.

Benzinga’s roundup of the best online brokers for index funds covers platforms with zero-commission fund access and automatic investing tools.

If you prefer the flexibility of funds that trade like stocks, compare the best brokers for ETFs before committing.

Place Your First Order

Inside your brokerage app, search the ticker symbol, tap buy, and choose an order type.

A market order buys immediately at the best available price, while a limit order only executes at the price you set or better.

For most long-term investors buying widely traded stocks, a market order during regular trading hours, 9:30 a.m. to 4 p.m. Eastern, is the simplest route.

Limit orders matter more for volatile situations, and today’s SpaceX debut is a textbook example, since retail investors submitted more than $70 billion in orders for shares priced at $135, a setup that can produce sharp first-day price swings.

If a full share is out of reach, most major brokerages offer fractional shares, which let you buy a slice of a stock for as little as $1 to $5.

That means you do not need $500 to own a piece of a company trading at $500 per share.

What Happens After You Buy

Your trade settles in one business day under the SEC’s T+1 settlement rule, which took effect in May 2024.

From there, the share sits in your account, and any dividends the company pays land there automatically, with most platforms offering free dividend reinvestment.

The habit that matters most is consistency: investing a fixed amount on a regular schedule, called dollar-cost averaging, smooths out the highs and lows of market timing.

If you are still choosing a platform, SoFi makes a strong starting point, since SoFi Invest offers commission-free trading and fractional shares starting at $5, which is enough to begin building a position this week.

For a wider comparison across fees, research tools, and account types, Benzinga’s full ranking of the best stock brokers in the U.S. is updated for 2026.

And if you are tempted to make SpaceX your first purchase, consider waiting a few sessions, since IPO prices often settle well above or below their opening trades once the initial demand works through the market.

The post How to Buy Stocks by Alison Plaut appeared first on Benzinga. Visit Benzinga to get more great content like this.

Charles Schwab is a well-known name in the investment world, celebrated for its range of services and user-friendly platform. However, it’s not the only player on the field. Exploring alternatives, such as E*TRADE and Interactive Brokers, could uncover opportunities that better align with your financial objectives. Whether you seek low-cost trading, innovative technology or specific investment products, the right brokerage could be just a few clicks away.

Quick Look at the Top Charles Schwab Alternatives:

• Best for desktop trading: eToro
• Best for beginners: Robinhood
• Best for active traders: Webull
• Best for active and global traders: Interactive Brokers
• Best for social investing: eToro
• Best for stock research: Fidelity
• Best for IPO investing: Sofi Invest
• Best for ETF and mutual fund investing: Vanguard
• Best for global investing: Zacks Trade
• Best for Bank of America customers: Merrill Edge
• Best for socially responsible investing: Ally Invest

11 Best Alternatives to Charles Schwab

Investors looking for an alternative to Charles Schwab have many options to consider. The following are some alternatives to Charles Schwab, including their pros and cons.

1. Best for Desktop Trading: E*TRADE

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Desktop Trading

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Desktop Trading

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E*TRADE is an online discount trading house that offers brokerage and banking services to individuals and businesses. One of the first brokers to embrace online trading, E*TRADE not only survived both the dot-com bubble and Recession — it thrived. You can choose from two different platforms (one basic, one advanced). E*TRADE is a suitable broker for traders of most skill levels, whether you want to buy mutual funds and hold them for decades or dabble in options swing trading. E*TRADE offers a library of research and education materials to help you out.

Best For

• Active traders
• Derivatives traders
• Retirement savers

Pros

• Sophisticated trading platforms
• Wide range of tradable assets
• Exceptional customer service

Cons

• Limited currency trading
• Higher margin rates than competitors
• No paper trading on its standard platform

E*TRADE is a well-known brokerage platform that offers a wide range of investment products, including stocks, options, ETFs and mutual funds. The platforms offers advanced trading tools such as Power E*TRADE, a powerful trading platform with real-time market data, technical indicators and charting tools. E*TRADE is also known for its excellent customer support options, including phone and email support.

Fees: $0 commission on stocks & ETFs; $0.65 per options contract (drops to $0.50 if ≥30 trades per quarter).

Why we picked it: E*TRADE offers commission-free trading for stocks, options and ETFs, making it an excellent choice for cost-conscious investors.

2. Best for Beginners: Robinhood

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Commission-Free Mobile Trading

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Commission-Free Mobile Trading

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Robinhood is a popular trading platform known for its commission-free trades and user-friendly mobile app. Ideal for novice investors, Robinhood makes it easy to buy and sell stocks, ETFs and cryptocurrencies. The platform offers a straightforward, no-frills experience, making it accessible for users new to investing. With features like fractional shares and a sleek interface, Robinhood lowers the barriers to entry for investing, allowing users to start with just a few dollars. It lacks the advanced tools and research options that more experienced investors might seek. Overall, Robinhood is a great choice for beginners seeking a simple way to invest.

Best For

• Beginners looking for simplicity
• Mobile-first investors
• Commission-free trades

Pros

• User-friendly mobile app
• Instant double
• Cash management
• Access to cryptocurrencies

Cons

• Limited research tools
• No mutual funds available
• Basic customer support options

Robinhood is a brokerage platform that provides commission-free trading for stocks, options and cryptocurrencies. Its user-friendly interface is designed for easy navigation, making it accessible for both novice and experienced traders alike.

Fees: $0 commission on stocks, ETFs, and options (no contract fees).

Why We Picked It: Robinhood offers fractional share trading, which allows investors to buy and sell partial shares of stocks.

3. Best for Active Traders: Webull

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Active Traders

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Active Traders

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Webull is a commission-free trading platform designed with both beginner and advanced investors in mind. Offering an extensive range of assets like stocks, ETFs, and futures, Webull makes it easy for users to manage their investments through a highly intuitive interface. With educational resources, paper trading options, and no minimum account balance required, Webull caters to those looking to start investing without high upfront costs. The platform’s mobile app ensures that users can trade anytime, anywhere, making it a flexible choice for those with busy lifestyles. Webull’s customer service options are limited, and the platform may feel overwhelming to those completely new to investing.

Best For

• Commission-free trading
• Mobile and desktop trading
• Beginners and experienced traders alike

Pros

• No commissions on trades
• Extensive range of tradable assets
• Easy-to-use mobile app

Cons

• Limited customer service options
• Learning curve for complete beginners

Webull is a commission-free brokerage platform that trades stocks, options, ETFs and cryptocurrencies. It provides a suite of advanced trading tools, including technical indicators, sophisticated charting features and real-time market data. With its intuitive and user-friendly interface, Webull ensures a seamless navigation experience for all users.

Fees: $0 commission on stocks & ETFs, and zero per-contract fees for equity options trades.

Why we picked it: Unlike Charles Schwab, which provides a broader range of financial services including banking and wealth management, Webull focuses primarily on trading and investment, offering features like real-time market data, customizable charts and an intuitive interface.

4. Best for Active and Global Traders: Interactive Brokers

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Active and Global Traders

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Active and Global Traders

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Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.  

IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.

Best For

• Access to international markets
• Active traders
• Detailed mobile app that makes trading simple
• Wide range of available account types and tradeable assets

Pros

• IB SmartRouting provides significant price improvement vs. industry
• Fractional trading allows investing regardless of share price
• Industry’s lowest margin rates
• Earn more by lending your fuly-paid shares

Cons

• Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources

Interactive Brokers is a popular, comprehensive trading platform that allows you to access over 150 global markets. For excellent portfolio diversification, you can buy various stocks, options, futures, forex, bonds and fund trading. You won’t have to pay a commission on any U.S. stock purchase or sale with the IBKR Lite pricing plan.

While IBKR is geared primarily toward experienced traders and investors, you can use the free paper trading platform and free educational resources to build your trading skills and acclimate to IBKR’s offerings.

Fees: $0 commission for U.S. stocks & ETFs under the IBKR Lite plan; options cost $0.15-$0.65 per contract depending on plan and volume.

Why we picked it: Interactive Brokers provides advanced trading tools and resources, including comprehensive research, data analytics and customizable interfaces.

5. Best for Social Investing: eToro

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Social Investing

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Disclosure: eToro is a multi-asset platform which offers both investing in stocks andcryptoassets, as well as trading CFD assets. Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. This content is intended for informational and educational purposes only and should not be considered investment advice or investment recommendation. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more at https://etoro.tw/44JRWLY Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk. Past Performance is not an indication of future results eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.  

Best For

Social Investing

N/A

1 Minute Review

eToro is a leading trading and investing platform that’s recognized for its stock and crypto broker services. Its standout feature, copy-trading, allows users to reproduce the trades of other investors on the platform. In addition to stocks and cryptocurrencies, eToro provides Smart Portfolios — diversified portfolios of crypto assets managed by eToro. 

The platform is regulated by regulatory authorities such as the FCA, SEC, ASIC and CySEC, ensuring a level of trust and security for users. While eToro boasts a user-friendly web and mobile platform, it has limited customizability and lean educational and research offerings. Overall, eToro provides a convenient and regulated platform for social trading and investment.

Best For

• Investors who want to follow and copy other traders
• Investors who want to trade crypto, stocks and options on the same platform
• Beginners who want to invest in stocks and ETFs with zero commissions and copy-trading features

Pros

• Commission-free stocks and ETFs trading
• Innovative social investing platform with CopyTrader feature
• Access to a wide range of cryptocurrencies, stocks and ETFs
• Free virtual trading account and digital wallet

Cons

• High spreads for buying and selling crypto assets
• Contracts for difference (CFDs) unavailable inside the U.S.

eToro is a brokerage that stands out for its crypto offerings. The online brokerage offers the trade of 30+ cryptocurrencies and more traditional investments like stocks and ETFs but with a limited selection. eToro’s active community makes it a good option for people who want to learn from experienced crypto traders.

Fees: $0 commission on stocks, ETFs, and options (no per-contract fee).

Why we picked it: For a standard online brokerage, eToro offers some of the most extensive cryptocurrency trading and resources.

6. Best for Stock Research: Fidelity

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Stock Research

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Stock Research

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Fidelity is a comprehensive and responsive brokerage suitable for both new and experienced traders alike. With complete access to the full U.S. stock and options markets, a set of state-of-the-art education and research tools, as well as a wide fee-free fund selection, Fidelity is equally useful for the veteran swing traders to novices opening their first accounts. Mobile traders will be especially happy with Fidelity’s app, which mirrors full capabilities of the platform. Though there isn’t much to criticize about Fidelity, the broker does have a few areas where it can afford to improve. Margin rates are significantly higher than most other brokers, especially for traders borrowing less than $25,000. It also doesn’t offer any access to the futures markets. Despite these minor flaws, Fidelity remains a strong choice for most investors.

Best For

• Easy-to-navigate yet functional platform strikes the perfect balance between expert tools and comfort for beginners
• Mobile trading app is fully-optimized and mirrors full functionality of the desktop platform
• Wide range of education and research options make learning more about securities and the market easier and less time-consuming

Pros

• Complete range of both independent and managed services available at exceptionally affordable prices
• Offers access to both domestic markets and 25 foreign markets, as well as a wide range of options contracts and over 10,000 mutual funds
• Mobile app that is well-integrated and works just as well as the desktop platform
• Wide selection of education tools and resources available free of charge

Cons

• Margin rates higher than many other competing brokerages
• No access to futures trading
• High fees for buying a non-Fidelity mutual fund (with over 3,300 fee-free funds available)

Fidelity is an online brokerage with an excellent reputation. It offers $0 trading commissions plus a selection of more than 3,000 no-transaction-fee mutual funds and zero-fee index funds. It also has top-notch research tools and a good mobile platform. Its good customer service makes it a solid choice for beginners and experienced investors.

Fees: $0 commission on stocks & ETFs; $0.65 per options contract.

Why we picked it: Fidelity offers zero commissions on stock and ETF trades, similar to Schwab, but extends this to a wider range of mutual funds, enhancing cost-efficiency for investors.

7. Best for IPO Investing: SoFi Invest

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IPO Investing

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Disclosure: Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage andActive investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Utilizing a margin loan is generally considered more appropriate for experienced investors as there are additional costs and risks associated. It is possible to lose more than your initial investment when using margin. Please see: https://www.sofi.com/wealth/assets/documents/brokerage-margin-disclosure-statement.pdf for detailed disclosure information Available to SoFi Invest members from August 18 – August 31, 2026. All eligible members receive a 1% Match on cash deposits into non-retirement SoFi Invest accounts; SoFi Plus members receive a 2% Match. SoFi Plus members must be subscribed at the time of deposit and keep the deposited funds in the account for five (5) years to retain the full 2% Match. Non SoFi Plus members must keep the deposited funds in the account for five (5) years to retain the full 1% match. Restrictions apply. Match may be taxable. Terms and conditions apply*. For 401k rollovers, existing SoFi IRA members must complete 401k rollovers via this link For SoFi members without a SoFi IRA, a SoFi IRA must first be opened, and 401k rollover must be completed utilizing Capitalize via this link. SoFi and Capitalize will charge no additional fees to process a 401(k) rollover to a SoFi IRA. SoFi is not liable for any costs incurred from the existing 401k provider for rollover. Please check with your 401k provider for any fees or costs associated with the rollover. For IRA contributions, only deposits made via ACH and cash transfer from SoFi Bank accounts are eligible for the match. Click here for the 1% Match terms and conditions. For full promotion terms please visit: https://www.sofi.com/acatoffer. SoFi does not accept cryptocurrencies and has limitations on some mutual funds and OTC stocks. Brokerage and Active Investing Products offered by SoFi Securities, LLC, Member FINRA/SIPC.

Best For

IPO Investing

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1 Minute Review

SoFi®’s mission is simple: to help reach clients like you reach their financial independence and realize their ambitions. SoFi knows that this independence comes from making decisions that help your money start to work for you in the long run. The brand helps individuals make these decisions through personal financial products such as personal loans, student loans and automated and active investing. 

The brand additionally provides in-person experiences such as educational and networking events, personalized guidance from experienced financial planners. SoFi’s services have been highlighted in outlets such as Forbes, Medium, and CNBC’s Make It.

Get a 1% Match on contributions to a SoFi non-retirement Active Invest account.

Best For

• IPO Investing
• Investors

Pros

• No Contract Fees
• Highly-rated mobile app for iPhone and Android
• No account fees; Transfer and Inactivity Fees are easily avoided
• More than most tradable securities included alternative asset funds

Cons

• Only available in the U.S.
• Limited selection of research and tools.

SoFi Invest is an all-inclusive online brokerage that is a good option for passive and active investors. You can buy IPO stock, build your nest egg or invest in alternative investments like venture capital, private credit and commodities. Its good investment app and intuitive online trading experience make it an excellent choice for beginners. 

Fees: $0 commission on U.S. stocks, ETFs and options trades. Previously SoFi had a $5 fee for options exercise/assignment; however, as of February 2026 eligible SoFi Invest members in the Options Level 1 program have no per-contract fee and no exercise/assignment fee (regulatory fees may still apply).

Why we picked it: Besides various investment options ranging from stocks to commodities to venture capital, SoFi offers financial and estate planning features.

8. Best for ETF and Mutual Fund Investing: Vanguard

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ETF and Mutual Fund Investing

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ETF and Mutual Fund Investing

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Vanguard was the first to offer low-commission trading on inexpensive index funds based on consumer-friendly investment principles. Day traders might not find Vanguard’s old-school style appealing, but retirement savers, buy-and-hold investors and companies that seek employer-sponsored programs might want to take a gander. Vanguard is a sensible choice for common-sense investment advice and efficient products. It’s a company that sticks to the morals of its hardy pioneer, Jack Bogle.

Best For

• Retirement savers
• Buy-and-hold investors
• Investors looking for a simple stock trading platform

Pros

• Large family of inexpensive ETFs and mutual funds
• Strong stock research selections
• Non-intimidating platform and mobile app

Cons

• Only 10 technical indicators available for charts
• No futures or forex trading
• Not ideal for day traders

Vanguard is a brokerage platform that offers a wide range of investment products, including stocks, bonds, mutual funds and ETFs. Known for its competitive pricing, Vanguard boasts some of the lowest fees in the industry, making it an ideal option for budget-conscious investors. Furthermore, Vanguard delivers outstanding customer support through various channels, including phone, email and live chat.

Fees: $0 commission on stocks & ETFs; $1.00 per options contract for many users.

Why we picked it: Vanguard offers a range of passive investment options, including index funds and ETFs, which can work well for long-term investors.

9. Best for Global Investing: Zacks Trade

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Global Investing

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Global Investing

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Founded by Len Zacks of Zacks Investment Research, the Zacks Trade online discount brokerage offers clients a broad range of financial assets to trade and invest in, as well as access to many of the most active global exchanges. Zacks Trade has considerable resources for active traders and investors, including excellent research and trading platforms. 

Zacks Trade’s 3 trading platforms include a wide array of trading tools and can be completely customized for active traders. Another advantage of Zacks Trade is phone access to a live human broker to enter trades and receive trade confirmations from. Unlike many other brokers, Zacks Trade doesn’t charge an extra fee for this service, although the broker still charges a per share transaction fee even though quite a few of its competitors now offer commission-free stock trading. 

If you’re an experienced trader or investor who can afford the broker’s rather high minimum deposit, Zacks Trade could be worth considering.

Best For

• Self-directed traders and investors
• Active traders
• International traders and investors
• Those wanting access to a human broker

Pros

• Excellent research resources
• Access to over 90 international exchanges
• 3 trading platforms and a mobile app
• Free access to a human broker

Cons

• Charges commissions on stock trades
• No forex, precious metals, futures or cryptocurrency trading

Zacks Trade offers investors access to Interactive Brokers’ trading platform and mobile app, although it has a slightly higher price point. One of its standout features is the ability to execute phone trades at no additional charge, a rarity among brokerage firms. Furthermore, Zacks Trade supplies extensive research resources, including Interactive Brokers’ sophisticated charting tools and comprehensive market data. Additionally, Zacks Trade grants access to international exchanges, enabling investors to diversify their portfolios significantly.

Fees: $0.01 per share (minimum $1) for stocks/ETFs, and ~$1 + $0.75 per contract for options.

Why we picked it: Zacks Trade offers a user-friendly trading platform, professional-grade tools and robust educational resources. 

10. Best for Bank of America Customers: Merrill Edge

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Bank of America Customers

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Bank of America Customers

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Merrill Edge is the discount brokerage wing of Merrill Lynch, who now operates under the umbrella of Bank of America. Bank of America customers get unique perks with Merrill Edge thanks to its fully-integrated system. Customers can jump back and forth between brokerage and banking services instantly and perform tasks like transferring money and paying bills.

Merrill Edge doesn’t provide access to advanced derivatives like futures and forex, but stocks, ETFs, mutual funds, options and fixed income securities can still be traded in a variety of accounts and vehicles. Additionally, Merrill Edge earns high marks for its research and customer service, although the asset class selection and mobile trading features aren’t as dynamic as some competitors.

Best For

• Retirement savers
• Bank of America customers
• Beginner traders and new investors

Pros

• Free research from reputable sources
• Powerful Merrill Edge MarketPro platform
• Bank of America customers can easily link accounts

Cons

• Limited derivatives trading
• No OTC stocks

Merrill Edge Self-Directed integrates directly with Bank of America accounts. It stands out for its robust research and free trade. In addition to a library of educational articles, courses, videos, webinars, virtual events and free tools and calculators, with Merrill Edge, you can access an Idea Builder tool to find investments that appeal to your values, such as filtering for ESG investments. While the securities available are more limited than other platforms, Merrill Edge offers a simplified process and good resources for new investors or those with a set-it-and-forget-it approach. 

Fees: $0 commission for online stocks & ETFs, $0.65 per options contract.

Why we picked it: With Merrill Edge, you’ll have access to commission-free stock, options and ETF trades and you’ll also enjoy high order execution quality.

11. Best for Socially Responsible Investing: Ally Invest

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Socially Responsible Investing

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Socially Responsible Investing

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Ally Invest is a comprehensive broker offering easy access to domestic markets. Combining a wide range of charting tools with an easy-to-master platform, Ally is a solid choice for both new and experienced investors. Ally’s mobile app is particularly impressive for investors who already bank with Ally, offering seamless compatibility between accounts. While more experienced investors might be disappointed with Ally’s beginner-oriented educational center, they’re bound to love Ally’s wide range of technical tools and rock-bottom pricing.

Best For

• Investors who already bank with Ally and want to streamline between accounts
• Beginners looking for easy-to-follow educational tools
• Stock investors looking for affordable access to low-priced options and commission-free stock trading

Pros

• Streamlined interface that’s easy to use and quick to master — even for beginners
• Wide range of unique tools that makes analyzing securities simple
• Seamless integration between mobile and desktop offerings, especially for Ally Bank account holders
• Diversified managed investment portfolios with a low minimum and no advisory fees
• Impressive ETF screening tools that make it easy to find your next fund

Cons

• No fee-free mutual funds
• No access to futures trading

Ally Invest’s $0 account minimum and $0 trading commissions on many U.S. securities make it a strong option for all traders. It also eliminated its $9.95 fee for mutual fund trades, allowing you to access around 5,500 funds without transaction fees. A low $0.50 options-contract fee will attract options traders. Ally Invest offers an automated portfolio management option and free tools for technical investors to improve portfolio performance. 

Why we picked it: Ally Invest’s strong web-based platform is easy for experienced technical traders and beginner investors. 

Final Thoughts on Charles Schwab Alternatives

You can find many excellent alternatives to Charles Schwab. Robinhood is a great choice for investors who want commission-free trading and advanced trading tools, while Vanguard can work for investors who want low fees and excellent customer support. E*TRADE is an excellent choice for investors who want commission-free trading and strong customer support. At the same time, Robinhood offers a good alternative for investors who want commission-free trading and an easy-to-use platform. Webull also offers commission-free trading and advanced trading tools.

When selecting a brokerage platform, consider your investment goals, risk tolerance and trading preferences. Keep building resources to refine your strategy and make the most of your money with the latest smart investing strategies, such as keeping costs down for long-term growth. You can also check out FINRA Educational resources. By evaluating the pros and cons of each platform, you can find the one best suited to your needs and current financial goals. 

Frequently Asked Questions

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Robinhood is a brokerage firm pioneering zero-commission trading. As if that weren’t enough, it also offers new investors the opportunity to receive up to $200 in free stocks through a sign-up reward and referral bonuses. Robinhood’s competitive strategy can help new investors start their portfolios. In addition, accounts are insured by the U.S. government for up to $500,000, offering a sense of security.

With Robinhood, you can sign up for regular and retirement accounts. You can also get a 1% match on traditional or Roth IRA contributions.  

Building a diversified investment portfolio with free stocks can give you the opportunity to expand market exposure and diversify your portfolio without initial capital costs. You’ll gain immediate value and growth potential. Read on to learn how to claim your Robinhood-free stock.

How to Get a Free Stock From Robinhood

Robinhood’s free stock promotion has been around in various forms for years. As of April 2026, when you open a new Robinhood account and meet the eligibility conditions (link bank, fund account), you become eligible for a free-stock reward valued between around $5 and $200.

For each friend you refer (who then opens and funds an account), you may receive another free share (and so may your friend) again valued between roughly $5 and $200 — though in practice the reward is almost always at the low end of the range.

As per its website, Robinhood notifies you when your stock is ready for claiming. You can also navigate to Messages for notifications about new claimable stocks under your Robinhood Rewards. To get the rewards, you’ll need to have an approved Robinhood investing account and link your bank account. 

How to Receive Free Stocks

To receive free stocks with Robinhood, there are a few simple steps to take:

1. Open an account by following Robinhood’s sign-up process from the homepage.
2. Link your bank account to your Robinhood account.
3. Transfer funds to your account. While some sources suggest at least $10, there’s no stated minimum, so start with what you want. 
4. Buy your first stock or investment on the stock market. You can also buy mutual funds, exchange-traded funds (ETFs) or other assets.
5. Claim rewards when you receive a notification that your free stock is ready.
6. Refer friends to keep earning more rewards.

If you regularly log in to Robinhood, the easiest way to claim your free stocks is to check the Rewards tab at the top of your Robinhood screen. There, you’ll see any rewards ready to claim and you can also see past claimed rewards. 

After the stock is transferred to your portfolio, you can hold it or sell it. Since Robinhood charges zero commission for U.S. stock, option and crypto trading, you could also sell the stock and buy another stock you’ve been wanting. 

One interesting point to note: you can pick your first stock or have Robinhood choose for you. If you pick your own, you’ll be given a choice of 20 companies and one week to choose your stock. 

Since Robinhood allows fractional shares, you don’t have to choose a stock under the $200 limit. With additional rewards, Robinhood will automatically assign you a stock. While 99% of the rewards are worth $5, some are between $100 and $200. 

If you decide to sell the free stock, you must wait three trading days after the reward is granted. You’ll also have to wait 30 days to withdraw the cash value after claiming the reward.

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Robinhood is a popular trading platform known for its commission-free trades and user-friendly mobile app. Ideal for novice investors, Robinhood makes it easy to buy and sell stocks, ETFs and cryptocurrencies. The platform offers a straightforward, no-frills experience, making it accessible for users new to investing. With features like fractional shares and a sleek interface, Robinhood lowers the barriers to entry for investing, allowing users to start with just a few dollars. It lacks the advanced tools and research options that more experienced investors might seek. Overall, Robinhood is a great choice for beginners seeking a simple way to invest.

Best For

• Beginners looking for simplicity
• Mobile-first investors
• Commission-free trades

Pros

• User-friendly mobile app
• Instant double
• Cash management
• Access to cryptocurrencies

Cons

• Limited research tools
• No mutual funds available
• Basic customer support options

About Robinhood

Robinhood is a mobile and online brokerage trading platform with the mission to “democratize finance for all.” 

The company was founded by two Stanford undergraduates, Vladimir Tenev and Baiju Bhatt. Robinhood, as the name evokes, was founded with the idea that the average person shouldn’t have to pay a commission for trading stocks when the major firms were charging hefty fees.

Like Robinhood, they wanted to bring money into the hands of the average person. This led to the Robinhood platform, a financial tool that gives everyone affordable access to financial markets.

The commission-free online trading platform means that users can trade stocks for free. Whether you’re day trading or saving for retirement, Robinhood has offerings to fit your investment style, including asset tools and resources. Instead of depending on stock brokers, you can trade directly from your computer or phone.  

There’s also a premium service called Gold, with additional features and benefits. For example, if you open a Roth or traditional IRA with Robinhood Gold, you could qualify for matching funds from Robinhood. Robinhood Gold offers a 30-day free trial, so you can try out the features and see if it’s a good fit. At just $5 a month, it offers a lot of value, including: 

• Earn 4% APY on cash deposits
• Protect your cash with FDIC protection through Robinhood’s partner banks
• Earn up to 3% IRA matching funds if you meet the qualification requirement
• Get research from financial analysts at Morningstar to take your investing to the next level
• Get real-time market data
• See bids and asks on securities with Level two market data from Nasdaq

Why Robinhood is a Top Choice for Traders

Robinhood is a top choice for traders compared to its competitors because of the professional-level traditional tools with market data from Nasdaq and research from Morningstar. The zero-commission trading, ease of use and impressive incentives also make it a popular choice. 

Additionally, Robinhood’s 24-hour Market is the only place where traders can trade 24 hours a day, five days a week, giving you more after-hours options. With no required monthly fee or account minimum to maintain a brokerage account, no foreign transaction fee, inactive account fees or crypto trading fees, you get a lot of value to build a portfolio on your terms. You can also check out Benzinga’s Robinhood review for a deeper dive into Robinhood’s features. 

Frequently Asked Questions 

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Get up to 8.1% APY and up to $1,000 total value in NVDA stock when you open an account with moomoo.

Do you want advanced stock analysis tools, low fees and free stock offers? Then moomoo might be for you. Moomoo is a popular trading platform offering a free stock promotion. The excitement of getting a free share is free money in your account. 

Hands-on investors who want to pick stocks, research the markets and trade frequently with zero commissions are excited about moomoo. There’s never been a better time for you to get in on all moomoo free stock offers this November.

Moomoo Free Stock Promotion (March 2026)

Moomoo is offering several free stock promotions. If you’re a new customer, you can get up to 8.1% APY plus up to $1,000 total value in NVDA stock. With this offer, you’ll get a 4.1% Cash Sweep base rate plus a 4.0% APY booster after three months with activation valid for 12 months. 

You can get $20 in NVDA stock for deposits of $100, $50 in NVDA stock for deposits of $2,000, $300 for deposits of $10,000 and $1,000 for deposits of $50,000. To receive the free NVDA stocks, you must maintain your average assets according to the requirements for 60 days to unlock them.

The offer is valid until August 31, 2026, 23:59 ET. You must have a U.S. Social Security number and be at least 18 years old to apply. You cannot have opened a brokerage account with moomoo before January 1, 2026, 00:00 ET, or haven’t made the first deposit if you have a brokerage account. You must make the first deposit before the offer deadline on August 31, 2026, 23:59 ET. 

Steps to Get Your Free Share

Here are the steps to get your free stock shares: 

1. Sign Up for a moomoo Account

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Traders of all levels

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Investing is a long-term journey, and moomoo can help guide investors of all levels every step of the way. Utilized by over 21 million users worldwide – including in the US, Singapore, Australia, Japan, Malaysia and Canada – moomoo is an investment and trading platform that empowers investors with pro-grade, easy-to-use tools, data and insights. moomoo provides advanced charting tools, technical analytics and Level 2 data for funded accounts, so investors have the resources to make more informed investment decisions. Users can access educational materials and interactive events, as well as share and learn through the inline community. With a low-cost, competitive fee structure, moomoo can work for all investors.

Best For

• Novices
• Intermediate and advanced traders
• Active traders

Pros

• Equity and index options trading
• Commission free trading for US options, stocks and ETFs and 6.8% margin rate
• Wealth of free options tools and features, including customizable options chain, options calculator, unusual options activity, implied volatility analysis, 13 options strategies and 0 days to expiration (0DTE) options by volume
• Free Level 2 data for funded accounts
• Advanced charting tools with 100+ indicators, 37+ drawing tools and 20 candle patterns
• No minimum deposit to open an account
• 24/7 online chat support
• 5.1% APY in Cash Sweep program for new and qualified users

Cons

• Does not support crypto
• Does not support retirement accounts or mutual funds

The sign-up process for a moomoo account is simple. You’ll need to enter your email address and a password. You’ll be prompted to create a new account by entering your name, date of birth, address and Social Security number. You’ll also have to answer questions about your employment status, income, net worth, investment objectives and legal compliance questions. 

Finally, you’ll need to link your bank account and verify your identity. Moomoo only offers individual margin accounts, but you can follow instructions in moomoo if you prefer to trade without margins. 

2. Make the Required Deposit

The minimum deposit to qualify for the free NVDA stock promotion is $100 for $20 in NVDA stock, $2,000 for $50, $10,000 for $300 and $50,000 for $1,000 in NVDA stock.

You can fund your account with bank transfers, electronic deposits or Automated Customer Account Transfer Service. You can also transfer funds from another brokerage account with a 1.5% cash reward match of up to $300. 

Here’s what the terms and conditions say about the free stock offer:

3. Complete Any Additional Requirements

After you complete a net deposit of $100 during the promotion period, you will receive $20 in NVDA stock. To be eligible for the promotion, you must maintain an average account balance of $100 or more for 60 days to unlock the free stocks. It is also notable that this offer is specifically for new customers or existing customers who haven’t made an initial deposit yet. Existing customers who have already funded their accounts are not eligible.

You must maintain a balance of at least $2,000 to qualify for the promotion of $50 in NVDA stock, $10,000 for $300 and $50,000 for $1,000 in NVDA stock.

4. Receive and Track Your Free Share

While you may see the free stocks after the initial transfer, you can only unlock them after 60 days of maintaining the minimum balance. At that point, they are credited to your account. 

The moomoo platform is designed for day trading and active investing. It includes investment products like mutual funds, stocks, ETFs, fractional shares, options, margins and free paper trading. You’ll also get access to charting tools, stock analysis and an active community that can support you in learning more about moomoo and investing. 

In addition, momoo’s investing app has everything its website offers, including access to extended-hours trading, professional research tools, market trends and financial news. You can invest in stocks, options trading and ETFs in the U.S. and globally. 

Terms and Conditions

The validity period for the free stock promotion is from January 1, 2026, 00:00 ET to August 31, 2026, 23:59 ET. During that time, you must open an account and deposit funds or deposit funds for the first time in a previously opened account. 

This offer is only valid for U.S. residents with a valid SSN who are at least 18 years old. Additionally, existing brokerage customers who have made previous deposits are not eligible for this promotion.

Additionally, you must maintain the minimum balance to qualify for free stock for 60 days after deposit. You can only access the stock after that 60-day period. 

Managing Your Free Stock

Whether you hold, sell, or trade the free stock depends on your investment strategy and the individual stock. If you prefer to focus on index funds or other diversified funds and you receive individual stocks, you might choose to sell them. 

On the other hand, if you have a fixed-income trading strategy or a buy-and-hold strategy, the moomoo tools can help you decide the right move. If the company has strong growth potential or meets your analytics criteria for investment, you could choose to hold the free stock and integrate it into your existing investment portfolio. 

Remember that you must pay any relevant capital gains taxes if you sell the stock. If you hold the stock for less than a year, you’ll need to pay short-term capital gains at your regular income tax rate.  

Why Choose moomoo?

Moomoo offers exceptional trading tools and a user-friendly interface to start investing in the stock market. It’s also known for high-quality customer service and a good knowledge database. 

Whether you’re an experienced investor or want to learn about investing, moomoo has tools to help you read your goals. Moomoo Learn Premium helps you expand your investing skills and knowledge if you’re a new investor.

Additionally, all investors can access excellent charting tools, stock analysis, AI tools, financial news fees and international investment opportunities. For example, moomoo allows you to access stocks from China and Hong Kong, as well as margins and options. 

Finally, the community features are excellent compared to other platforms. The moomoo community has lively discussions on the latest trades. Best of all? The moomoo app has it all, so you can check on the community and possible trades on the go. 

Want more? You can check out this moomoo review, the best stock trading apps or online brokers. 

Frequently Asked Questions 

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Gold and silver have long been two of the most popular precious metals for investors seeking stability and wealth preservation. Both serve as hedges against inflation and economic uncertainty, but they differ in market behavior, industrial use, and long-term potential. Gold is often viewed as a safer, more stable store of value, while silver offers greater affordability and higher volatility, which can mean larger gains—or losses—depending on market conditions.

Understanding the key differences between gold and silver can help investors decide which metal best fits their financial goals and risk tolerance.

Side-by-Side Comparison

Here’s a quick side-by-side comparison of investing in gold vs. silver:

Comparing Gold and Silver Investments

Both gold and silver can help investors hedge against economic instability. However, understanding how the two precious metals are used, their economic sensitivities and costs can help you decide which is best for your portfolio.

Cost and Volatility

While gold is more costly, that can be a point in its favor. Gold has long shown growth and stability regardless of market fluctuations. Its overall value can make it a strong hedge against a recession. Gold is also less volatile and has higher liquidity.

On the other hand, the price of silver is more volatile because of low liquidity, while gold is historically more expensive but less volatile. But for many investors, it’s easier to invest in silver. For one, the price point is significantly lower. The cost of an ounce of silver, as of November 2025 is $49, while gold is $4,021 per ounce.

Silver’s volatility can benefit investors who want to buy or sell in the short term. Volatility means a potential for greater gains and greater losses. In a long-term investment, you look at average returns over a 10-year period or longer. In the short term, you risk greater losses but could also profit from that volatility.

Utility

The utility of gold and silver as precious metals goes far beyond beauty and coins into commercial and industrial applications. However, there is significantly higher industrial use of silver compared to gold. Almost every computer, mobile phone, automobile, and appliance contains silver. It offers a unique combination of high electrical conductivity and durability.

Silver is essential in many industries, from electrical switches and solar panels to chemical-producing catalysts. More intriguingly, painting silver on a non-metal surface provides an electrical pathway, eliminating the need for wires.

Silver ions also have strong antibacterial properties, making silver useful in medical and healthcare applications, from wound dressings to medical devices and antimicrobial coatings for surfaces. Its value is sustained by unique properties that make it difficult to substitute in various applications.

Gold also has diverse industrial applications, from medicine to electronics, automotive, defense, and aerospace industries. Gold has excellent biocompatibility and has been used in dental fillings since ancient Egyptian times and is also commonly used to coat hearing aids and implants. It is also used as a catalyst in many industrial processes.

Investment Goals

Whether you should choose gold or silver also depends on your investment goals. Different types of investment goals, such as wealth preservation, capital growth, income generation, retirement planning, and educational funding, can lead investors to choose either gold or silver. You will want to take into account your individual risk tolerance, time horizon, and financial situation. For most investors, it’s not a choice of gold vs. silver but a question of how much of your portfolio you should allocate to each.

Relationship with Broader Market

Gold and silver have different relationships to the broader market. Gold is considered a countercyclical investment, with its price moving inversely to the stock market. That’s why it’s considered an excellent hedge against market downturns. On the other hand, silver tends to move with the economy overall. You could capitalize on a bullish market or sell short in a bear market. Investors often hold gold for liquidity during a downturn.

On the other hand, a recession could negatively impact silver, but it has historically profited from economic recovery at the end of a recession. Silver has actual monetary and industrial value, so while an economic slowdown may temporarily reduce the demand, it typically recovers faster than other commodities.

Diversification

Diversification is a fundamental essential of any investment strategy. Diversification means spreading your assets across classes and investment types. For example, you could choose to invest in stocks, bonds, index funds, commodities, currencies, cryptocurrency, real estate or REITs, gold, silver, and other precious metals.

Building a diversified investment portfolio includes combining assets that have low or negative correlations with each other, like gold and silver. Additionally, while silver is a moderately weak positive diversifier, gold is considered a more powerful diversifier because of its consistently uncorrelated nature to stocks and low correlations with other major asset classes.

Affordability

While the cost per ounce of silver is about one-ninth of gold, that’s not really an advantage alone. Many stocks let you buy small fractions of gold or invest in gold funds. That levels the playing field of gold vs. silver. In addition, although ounce-for-ounce gold is more expensive, it’s also better for diversifying your portfolio overall.

Storage

Have you ever seen blocks of gold in movies? There’s a reason both heroes and villains choose gold blocks. Gold is a more convenient precious metal to store because of its high density. Not only is it more valuable by the ounce, but it also requires less space to store. Storing silver is more challenging because of its lower density, requiring larger storage space and more expensive bank deposit boxes if you’re storing it at a bank.

Gold vs. Silver — Future Outlook

The future outlook for gold and silver is expected to be positive. Gold tends to perform inversely to the wider market, and silver is known for fast recoveries after a recession.

However, while silver historically tends to track the stock market and may be influenced by changes in manufacturing demand, gold tends to run counter to current economic trends. Gold is considered a countercyclical investment, tending to rise during economic downturns.

Consider Buying Gold and Silver in a Precious Metals IRA

A precious metals IRA is an individual retirement account in which you can have gold and other precious metals held in custody. A gold or precious metals IRA is similar to a regular IRA, but instead of holding stocks in a brokerage account, it holds physical metals. This type of investment allows you to buy gold and silver in a tax-advantaged retirement account to save for the long term.

To set up a precious metals IRA, you need to open a self-directed IRA. This type of IRA has the same limits and benefits as a traditional IRA but can hold a variety of physical assets, including precious metals, real estate, and cryptocurrency. To open this type of IRA, choose a self-directed IRA custodian specializing in gold and other metals.

Compare Gold and Silver Brokers

Find some of the best gold and silver brokers to start building your diversified portfolio today.

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Gold IRAs with On Going Promotions

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American Hartford Gold is a family-owned business based in Los Angeles, California. The organization is a market leader in precious metal investing. American Hartford Gold specializes in selling gold, silver, platinum, and palladium coins and bars and in helping its clients to set up Individual Retirement Accounts (IRAs) invested in precious metals. Precious metals are popular investments during times of high inflation as investors look for a hedge against inflation. Gold and silver investments may not follow the same trends as stocks, making precious metal investing a potential safe haven. American Hartford Gold offers investors the following services:

• Gold, platinum, palladium and silver investments
• Gold IRAs

Investors need an amount of $10,000 or more to start their retirement investment journey with American Hartford Gold. The company also assists investors looking to roll their current IRAs into gold IRAs. There are no taxes or penalties on either the trustee-to-trustee or 60-day rollover IRA options it offers. American Hartford Gold will buy back the precious metals when investors want to cash out.

Best For

• Investors looking for a hedge against inflation
• Retirement savers looking for tax benefits

Pros

• Quick & easy 3-step tax-free, penalty-free Gold IRA setup
• Same day IRA – fastest in the industry
• Ranked #1 Gold Company on the Inc 5000 List and A+ Rated on BBB
• Up to $15,000 in FREE silver on qualified accounts
• Lowest price guarantee, best ongoing promotions, no buy-back fees
• Wide range of investment-grade gold and silver products, including popular coins like American Gold Eagles and Canadian Silver Maple Leafs
• The company provides a wealth of information on investing in precious metals, including guides on the benefits of gold and silver investments

Cons

• Online catalog doesn’t show pricing
• No international shipping available outside of the U.S.

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Experienced Precious Metals Investors

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Experienced Precious Metals Investors

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Preserve Gold is a precious metals investment company that specializes in helping individuals diversify their portfolios with gold, silver, and other precious metals. With economic uncertainty and inflation concerns driving increased interest in tangible assets, Preserve Gold positions itself as a trusted partner for those looking to safeguard their wealth. In this review, we’ll take a closer look at the company’s offerings, reputation, pricing, and customer service to help you determine whether Preserve Gold is the right choice for your investment needs.

Best For

• Retirement investors seeking reputable and knowledgeable dealers for setting up Gold IRAs to safeguard their retirement savings
• Individual investors looking for a trusted and reliable precious metals source to diversify their portfolios and protect from inflationary pressures
• Experienced precious metal investors interested in expanding their catalogs and turbocharging their portfolio with a wide range of precious metals, including gold, silver, platinum, and palladium
• Novice investors seeking transparent and integrity-driven precious metal dealers to provide them with the guidance and support needed to understand the world of precious metals investing
• Those interested in acquiring precious metals for collections or decorative purposes may also benefit from the price appreciation

Pros

• Zero-pressure sales tactics, excellent Trustpilot reviews and no BBB complaints
• 24-hour satisfaction guarantee — cancel your purchase within 24 hours of completing the transaction and receive your money without penalty, regardless of the reason
• Competitive pricing — they can price-match or beat the price of their competitors
• Excellent buyback policy — zero liquidation fees for existing clients
• Lifetime account support from a dedicated precious metals specialist
• Extensive catalog of major precious metals, including gold, silver, platinum, and palladium
• Excellent educational resources, including ebooks, informational kits, and market outlook
• Reputable company whose executive team has 30+ years of combined experience streamlining precious metal investment
• Free, insured, and fast shipping within one week of payment clearance

Cons

• Limited fee information online — investors must call or fill out a form to get metal pricing
• US customers only

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Precious Metals and Coins

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Precious Metals and Coins

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Priority Gold is a precious metals investment company specializing in gold, silver, platinum, and palladium. It offers investors a way to diversify their portfolios through physical bullion purchases and self-directed precious metals IRAs. Known for its customer service and educational resources, Priority Gold aims to help both novice and experienced investors navigate the complexities of precious metals investing.

In this review, we’ll examine Priority Gold’s services, pricing, security, and overall customer experience. Whether you’re looking to hedge against inflation or secure long-term wealth, understanding the pros and cons of investing with Priority Gold can help you make an informed decision.

Best For

• Anyone seeking to set-up a Gold or Silver IRA or rollover
• Beginner gold and silver buyers looking for a transparent and integrity-driven precious metals company

Pros

• Reasonable and fair pricing
• Buy Back and Price Protection plans
• Insured and robust IRS-approved vaults/depositories for IRA gold and silver storage (3 years free storage for eligible accounts)
• An impressive selection of rare and widely held precious metals products, including IRS-eligible gold and silver coins
• Unconditional and zero-fee precious metals buyback or a repurchase program guarantee
• Accessible and responsive customer service personnel available across multiple channels including phone and email
• A+ Rated on BBB and 5 star rating on TrustLink
• Expert gold and silver consultancy services offered by certified precious metals specialists who provide comprehensive guidance and support
• An insured and expedited shipping process
• Excellent research and educational resources, including a free precious metals and IRA kit

Cons

• Gold and silver coins dominate the precious metals product selection; customers who prefer larger bullion bars, rounds, and other forms of gold and silver might consider looking elsewhere
• No live chat
• No platinum and palladium, unlike some of its competitors

Should You Invest in Gold vs. Silver?

For most investors, the choice of gold vs. silver in an investment portfolio isn’t the choice of one or the other. Both gold and silver have a place in a diversified portfolio. You can speak with a financial adviser to determine the best investment ratio for your financial goals. Or, check out the best gold IRAs to get started.

Frequently Asked Questions

The post Gold vs. Silver: What’s the Better Investment? by Alison Plaut appeared first on Benzinga. Visit Benzinga to get more great content like this.

Buying rental property with an LLC (Limited Liability Company) can provide valuable legal protection, potential tax advantages, and a more professional structure for your real estate business. An LLC separates your personal assets from your investment property, reducing your liability in case of lawsuits or financial issues. It can also offer flexible ownership arrangements and easier transfer of interests.

Understanding the process—from forming the LLC and securing financing to closing the deal—can help you purchase property more strategically and protect your long-term investment.

Can You Buy a Rental Property With an LLC?

Yes, you can buy a rental property with an LLC. Investors choose to buy a rental property with an LLC to reduce personal liability and invite new members. Sometimes, lenders are more hesitant to provide financing to an LLC. However, you can secure financing and buy a property with an LLC through private financing, cash, or by working with mortgage lenders.

Requirements to Buy a House Under an LLC

While there are no specific requirements for purchasing a house or rental property with an LLC, you should be aware of possible additional criteria from lenders. You might get higher interest rates on an investment property or have difficulty qualifying for a mortgage.

To increase your chances of securing a mortgage for a rental property purchased by an LLC, consider a larger down payment and build the credit score of the LLC.

Steps to Buy Rental Properties with an LLC

Here are the steps to buying rental properties with an LLC.

Choosing the Right LLC Structure for Buying a Rental Property

You can choose from different LLC types, such as single-member LLCs, multi-member LLCs, Series LLCs (only available in certain states), or anonymous LLCs (also available only in certain states). Once you’ve decided on an LLC type, you can form an LLC, depending on state requirements, within a day to a month.

Establishing an LLC

The steps to establish an LLC are:

1. Select a unique name for your LLC
2. Register your LLC with the state
3. Obtain an Employer Identification Number (EIN) with the IRS
4. Draft an Operating Agreement
5. Open a business bank account
6. Get any state or local licenses or permits
7. Get relevant business insurance

Once the LLC is established, you’re ready to purchase a property. You can also use an existing LLC to buy a property as long as rental properties fit with the stated purpose.

Financing Your Rental Property with an LLC

If you plan to apply for a conventional mortgage, the first step to securing financing may be building business credit for the LLC. You’ll need to establish a separate business bank account, obtain a business credit card, and consistently make on-time payments to vendors and suppliers.

Once the LLC is established, various financing options are available to purchase a rental property. These include:

• Conventional mortgages
• Commercial loans
• Portfolio loans
• Partnerships with other investors
• Private loans
• Mortgage brokers

You can consider networking with other investors or taking private loans to secure financing that’s not conventional. In addition, mortgage brokers can help you connect with the best options available.

Identifying Potential Rental Properties

Once you’ve established which financing options to pursue, it’s time to set investment criteria for rental properties. This process includes conducting thorough market research and evaluating property opportunities based on profitability, long-term cash flow, and return on investment (ROI). You can work with local real estate agents to identify target markets and research comparable properties.

Making an Offer and Closing the Purchase

Once you’ve located the property, it’s time to make an offer and negotiate the purchase price with the seller. After the seller accepts the offer, you’ll need to secure financing and obtain loan approval. This is also the time to perform thorough due diligence with an inspector and appraiser. Once everything is satisfactory, you can finalize the purchase agreement and close the deal.

Operating and Managing the Rental Property with Your LLC

After the property purchase, you’ll need to act as the property manager or hire property management services. Responsibilities in managing a rental property include:

• Marketing for and securing tenants
• Tenant screenings
• Maintaining proper record-keeping and accounting for the LLC
• Managing tenant relationships
• Collecting rental income
• Performing property maintenance and necessary repairs

While you can do this yourself, if the time commitment is too great, a property management company typically takes a set percentage of the monthly income. Using professional management allows you to earn on the rental property without active day-to-day property management.

Insurance and Risk Management for Rental Properties Owned by an LLC

Even though a limited liability company protects your personal liability, you’ll also want insurance to protect the LLC. Consider obtaining landlord insurance to protect the LLC from liability claims. You’ll also need property insurance to protect the investment value.

Another good option for landlords is umbrella liability insurance. An umbrella policy covers various liabilities that could arise as a landlord, not only those related to the rental property.

Tax Considerations for Rental Properties Owned by an LLC

When a rental property business is an LLC, the income is generally taxed to the LLC’s members as pass-through income. That means you must report all LLC income on your individual income tax return or elect for the LLC to be taxed as an S-corporation or C-corporation.

The LLC can report rental income and qualified business expenses to reduce total taxable income. Consider using tax deductions or tax advantages available to LLCs. You can consult a tax professional, like a CPA, for guidance and to ensure correct reporting and compliance.

Advantages of Buying Rental Properties Under an LLC

You can take advantage of several benefits when you buy a rental property under an LLC, including:

• Protection of personal assets
• Pass-through taxation
• Easier to separate business funds from personal funds
• Makes it easy to partner with other investors
• Protect the property owner’s privacy

Disadvantages of Buying Rental Properties Under an LLC

The disadvantages of using an LLC to buy a rental property include:

• Additional fees to start and maintain the LLC
• More challenges to secure a conventional mortgage
• It can be difficult to transfer an existing rental property into an LLC if you have a mortgage on the property

Becoming a Real Estate LLC Owner

Whether buying your first rental property or planning to build a real estate investing business, using an LLC to purchase properties and grow the business can make sense. You gain liability protection, privacy, and simplified business entity management. As an investor, having a business entity also adds credibility to your business and makes it easy to add other investors.

Frequently Asked Questions 

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Calculating return on investment (ROI) on a rental property is essential for understanding its profitability and making informed decisions as an investor. ROI measures how much profit you’re generating relative to the amount of money you’ve invested. By factoring in rental income, expenses, and financing costs, you can determine whether a property is delivering the returns you expect or if your capital could be better deployed elsewhere.

Knowing how to accurately calculate ROI helps you compare opportunities, plan for future growth, and maximize your real estate investment performance.

What is Return on Investment (ROI)?

Return on investment (ROI) is a ratio, expressed as a percentage, of an investment’s gains or growth compared to its costs. It is a significant measure of an investment’s performance used to compare diverse portfolio holdings objectively. ROI shows the efficiency of one investment compared to another. It is typically calculated annually. Here’s a simplified example:

Suppose you purchase a house for $100,000, invest $20,000 in renovations and repairs, and then resell the property for $180,000. In that case, your return on investment of $120,000 would be $60,000, or 50%. That’s an exceptional ROI more likely to be seen in professional house flippers’ portfolios.

With a rental property, you’ll hold the property long-term, leading to different possible ROI calculations. The most common measures used are cash flow ROI and cap rate, although investors will usually also measure cash-on-cash return and net operating income. Here’s how to understand cap rate and ROI.

Capitalization Rate

The capitalization rate, commonly called the cap rate, is used by investors to measure the relative performance of an investment property. The cap rate is the ratio between annual rental income and a property’s current assessed asset value, expressed as a percentage. Cap rate is useful for investors because it allows you to consider appreciating property values.

Cap rate = net operating income / asset value

For example, if you purchase a rental property for $200,000 and earn a net operating income of $20,000, the property’s cap rate would be 10%.

$20,000 / $200,000 = 10%

When assessing possible investment properties, generally, the higher the cap rate, the greater the risk and the faster the payback period. With a 10% cap rate, you will breakeven on the property value in 10 years.

Calculating ROI

To begin calculating ROI, you’ll want to calculate monthly cash flow.

Cash Flow = Gross Rent – All Expenses

With this formula, you’ll have how much cash you can expect to receive monthly after deducting all expenses, including marketing, property management services, maintenance, property taxes, and insurance.

Next, you’ll want to consider the ROI formula used for any investment:

To calculate the percentage ROI, take the net profit, or net gain, on the investment and divide it by the original cost:

ROI = (Gain on Investment − Cost of Investment) / Cost of Investment

As you’ll see below, applying this formula to rental properties requires additional considerations, including whether or not the property is financed.

How to Calculate ROI on Rental Properties

You can use the formula above, but it’s important to remember the numerous variables that affect the ROI on real estate, including the repair and maintenance expenses, whether the property was financed, the amount borrowed, and the interest on the initial investment.

If you paid for a property with cash, calculating ROI is relatively simple. First, you calculate net operating income and then plug that number into the ROI formula. Here’s an example.

If you purchased a property for $100,000 and invested $20,000 in repairs, closing costs, and maintenance expenses, your total investment is $120,000. If you collected $900 on rent each month, the gross income would be $10,800. If expenses for maintenance, insurance, taxes, and utilities for the year totaled $2,000, your total annual return would be $8,800 ($10,800 – $2,000).

Then, you can plug those numbers in to calculate the property’s ROI:

ROI = (Gain on Investment − Cost of Investment) / Cost of Investment

ROI = ($128,800 – $120,000) / $120,000 = 7.3%

You could also simply write this ROI = $8,800 / $120,000 = 7.3%

Your ROI would be 7.3%. In the case of financed properties, you’ll subtract the interest or cost of the mortgage from the gross income to get an accurate ROI.

What is a Good ROI for Rental Property?

While investors in the stock market will tell you that a standard expected ROI might be 7% and a good ROI might be 10% to 11%, with rental properties, the considerations are more complex.

For that reason, there’s no single good ROI on rental properties. Factors that influence the returns a property generates include:

• Purchase price
• Mortgage costs, including down payment, closing costs, interest, and monthly payments
• Rental income
• Occupancy rates and tenant retention
• Operating expenses

When looking at good returns on a rental property, investors should first look for positive cash flow. Whether you financed the property or invested cash will also influence target ROIs. For example, if you financed the property, even earning $100 a month while paying off the mortgage, covering expenses, and building asset value can be considered good.

Investors interested primarily in long-term asset growth may be happy with modest cash flow and the assumption that the property will appreciate over time. However, if you’re looking for short-term cash returns, most investors look for a minimum of 7%, comparable to recent averages in indexed funds. In the example above, after deducting expenses, you’d earn about $733 per month while earning over 7% ROI without accounting for any appreciation.

Importance of Understanding ROI on Rental Properties

ROI is important to objectively compare rental properties with other investments to understand short-term and long-term returns. Knowing the ROI allows you to be a more informed investor and accurately compare rental property returns before purchase.

If a property depreciates or ROI becomes low or negative, this can be an indicator to change strategy or reconsider the long-term value of the investment.

Factors Affecting the ROI of an Investment Property

Here’s a breakdown of the main factors affecting rental property ROI.

Home Equity

Home equity impacts ROI on rentals over the long term. Equity is the market value of the property minus any outstanding loan amount. However, since home equity isn’t cash in your bank account, you’d need to sell the property to confirm the assumed value.

To calculate the amount of equity in your home, review your mortgage amortization schedule to determine how much of your mortgage payments went toward paying down the loan’s principal. This builds up the equity in your home.

For example, suppose the property’s market value is $250,000, and the outstanding loan principal is $100,000. In that case, you could calculate ROI with a home equity value of $150,000. If you initially invested $30,000, your ROI would be 500%. This calculation can show the growth of asset value even in the case of break-even cash flow.

Cash Transactions

For cash transactions, you’ll look for ROI on your investment from short-term cash flow and long-term appreciation. If you paid $100,000 for a property, including all closing costs and renovations, and made $12,000 net income on the property the first year, your ROI would be 12%.

ROI = (Gain on Investment − Cost of Investment) / Cost of Investment

ROI = ($112,000 – $100,000) / $110,000 =12%

Financed Transactions

In financing transactions, it’s important to incorporate the interest rate and associated financing costs into the ROI. For example, assume you bought the same $100,000 rental property but took out a mortgage.

The mortgage down payment was 20%, or $20,000. Closing costs with a mortgage were $3,000. If you paid $10,000 for remodeling, your initial investment would be $33,000.

If you secured a 30-year loan with a fixed 6% interest rate, the monthly payment on principal plus interest would be $762.97. To make an estimate, suppose additional monthly costs like insurance, utilities, taxes, and maintenance total $200 per month. That means the total monthly expenses are $962.97.

If the rental is $1,000 monthly, the gross annual income is $12,000. In that case, the annual cash flow would be just $444.

To calculate the property’s ROI, divide the annual return by the original out-of-pocket expenses:

ROI = $444 ÷ $33,000 = 0.0135

Your ROI is 1.35%.

However, if the property increases assessed value by an average of 5% yearly, this could still be a good investment even with a low annual ROI from cash flow. Likewise, if you could increase the rent to $1,250, your ROI would increase to 10.4%:

ROI = $3,444 ÷ $33,000 = 0.104 or 10.4%

Using ROI to Assess Property Returns

Whether buying your first rental property, considering managing rental properties, or building a rental property business, ROI offers investors a realistic and objective assessment tool. Taken together with additional real estate assessment tools like cap rate or the 2% rule, you can gauge the performance of rental properties both short-term and long-term.

Frequently Asked Questions

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Starting a rental property business can be a powerful way to build long-term wealth, generate passive income, and diversify your investment portfolio. Whether you’re renting out a single-family home, a multifamily building, or multiple units, success comes from careful planning, market research, and smart financial management.

From choosing the right property and securing financing to setting competitive rents and managing tenants, understanding each step in the process is key to creating a profitable and sustainable rental business. Continue reading to find out how to start a rental property business in 12 steps.

What is a Rental Property Business?

A rental property business involves owning and managing real estate properties with the intention of generating rental income. Ideally, each property will generate positive cash flow from the first month. You can manage the rental properties yourself or contract a property management company to manage the rental properties while you focus on other business initiatives.

To build a rental property business, you’ll need to secure financing, purchase properties, and rent them either for long-term rentals or short-term vacation rentals. While there are many details to cover, the basics of earning income in a rental property business are simple: purchase properties, renovate them if needed, and begin renting. With each additional property in your portfolio, you diversify income streams, reduce risk, and increase asset value over time.

12 Steps to Starting a Rental Property Business

Learning how to start a rental property business isn’t difficult, but it requires persistence and research. Here are 12 simple steps to get you started.

1. Read Up On Real Estate Investing

To start, it’s important to understand the basics of real estate investing, rental property management, landlord-tenant laws, and local real estate market trends. Consider reading books, taking courses, and seeking advice from experienced investors.

Local real estate networking events can provide opportunities to meet other investors, property managers, and realtors. Building relationships with local realtors can provide in-depth market insights and understanding to build your portfolio. Likewise, access to the local MLS to research comps can provide insight into under-market values and expected returns.

2. Define Your Strategy and Goals

Once you have a strong foundation in real estate investing, it’s time to define your focus and individual goals. Determine the type of rental property you want to invest in. Residential, commercial, vacation rentals, or multi-family residential units are common choices. Then, consider your financial goals. Property type and income goals may influence each other, as larger income goals may suggest a different investment strategy.

As part of the financial goals, consider the amount of rental income you want to generate, the number of properties you plan to acquire, and your desired return on investment. Create a realistic cost-expense analysis based on current market figures for rental income on comparable properties.

3. Create a Rental Property Business Plan

Creating a rental property business plan will outline your target market, location, investment criteria, financing options, and exit strategies. You may want to include projected income, expenses, average vacancy rates, and contingencies. Outlining objectives, financial forecasts, marketing strategies, and operational plans can demonstrate a clear roadmap toward growth. The more detailed and variable your business plan, the easier it will be to secure financing.

At this stage, it’s important to decide on a business structure, such as a sole proprietorship, LLC, or corporation. For most rental property business owners, an LLC offers liability protection with administration and tax filing flexibility.

4. Secure Financing

Once you have a clear business plan, it’s time to determine how you’ll finance your rental property purchases. Common financing options include personal savings, mortgages or loans, commercial loans, grants, building a partnership with another investor, or securing private investment.

If you plan to finance purchases with a mortgage, obtaining pre-approval from lenders can facilitate a fast transaction when you’re ready to make the purchase. You could even consider real estate crowdfunding to purchase a rental property.

5. Rental Property Search and Analysis

Once you have pre-approval or investors in place, it’s time to research potential properties that fit your investment criteria. Conduct thorough property analysis, considering factors such as location, property condition, potential rental income, and market demand. Use comps for similar rental properties within the area. Consider working with a real estate agent with in-depth market knowledge to locate the greatest opportunities.

6. Purchase and Property Acquisition

Once you locate properties within your target market, it’s time to make offers on properties that meet your criteria. Be prepared to negotiate terms and create a compelling offer to beat other interested parties.

If the offer is accepted, it’s time for thorough due diligence. This process includes property inspections, title searches, and a legal review. You’ll typically have one to two months to complete due diligence, but you can negotiate longer if needed. Once all contingencies are satisfied and due diligence hasn’t raised any issues, it’s time to complete the purchase.

7. Property Management

After you buy your first rental property, create a plan to minimize vacancies. An empty property is losing money. Creating a property management strategy even during negotiation ensures you can quickly implement the plan after purchase. For this, you’ll need to decide whether you’ll manage the properties yourself or hire a property management company.

Research market norms and set rental rates based on comparable properties in the area. Consider pricing slightly below market value to secure reliable, long-term tenants. At this stage, you’ll want to screen potential tenants and consider screening criteria such as credit score, income, and references. You will also need to draft leases or speak with a lawyer about finalizing a lease agreement.

Once the paperwork is signed, it’s time to oversee and support handling tenant move-ins and move-outs. If you’ve chosen to work with a property management company, it will advise you on pricing and manage the rest of the tenant relations, from tenant screening to move-in support.

8. Legal and Regulatory Compliance

It’s essential to understand landlord-tenant laws and regulations in your area for compliance. You can speak with the local chamber of commerce or the Secretary of State’s office to understand state and locality-specific regulations and mandatory filings and to comply with safety and health codes.

Before listing the property, it’s essential to ensure proper insurance coverage. This can include:

• Property insurance
• Landlord insurance
• Liability insurance
• Hazard and fire insurance
• Sewer and water line backup
• Flood insurance
• Tenant rent default insurance
• Pet coverage
• Worker’s compensation coverage (if you have employees)
• Umbrella insurance

9. Maintenance and Repairs

You’ll need to budget about 3% of the total property value for annual repairs and maintenance. Maintaining the property at a high standard can help secure higher rental income and better long-term tenants. To protect your investment, regularly inspect and maintain your properties to keep them in good condition. Good landlords are known for addressing maintenance requests promptly to keep tenants satisfied.

10. Bookkeeping and Financial Management

Maintaining detailed financial records for each property is essential, just as you would for any other business. Plan to track income, expenses, and taxes related to your rental properties. You can use one of many accounting apps to automatically import important income and expenses or keep track of everything by hand. These detailed financial records are necessary to prepare annual tax returns, secure financing, and protect your cash flow and investment value.

11. Scale and Grow

As you gain experience and build equity, consider expanding your rental property portfolio by replicating the steps above. Continuously refine your investment strategy based on market trends and your own experience to build a diversified, multi-income stream portfolio.

12. Networking and Education

To build understanding, market insights, and connections, attend real estate investment seminars, workshops, and networking events to stay informed about industry trends and opportunities. Networking is a valuable asset in real estate investing and can lead to new investment opportunities, insights, or connections to grow your rental property business.

Final Tips for Starting a Rental Property Business

Remember that not every property will appreciate in the short to medium term, and buying a rental property doesn’t guarantee high occupancy rates. Starting a rental property business can be a losing proposition without proper research. Remember to run the numbers, create conservative estimates, and double-check projections to create positive cash flow and build long-term value.

With an in-depth understanding, a rental property business, as part of a diversified investment portfolio, can build stable returns. For other real estate investment opportunities, consider real estate investment trusts (REITs) vs. rental properties.

Frequently Asked Questions

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When considering real estate investment options, two common choices are real estate investment trusts (REITs) and rental properties. REITs offer investors the opportunity to invest in real estate without directly owning physical properties. On the other hand, owning rental properties can offer the potential for higher returns and equity appreciation over the long term.

The decision between REITs vs. rental properties depends on your investment objectives, risk tolerance, time commitment, and financial resources. Some investors may prefer the passive income and diversification offered by REITs, while others may be more inclined towards the potential for higher returns and control provided by owning rental properties.

Side-by-Side Comparison

REITs vs. Rental Property: Main Differences

Here’s a detailed comparison of REITs vs. rental properties to understand the pros and cons of each. 

1. Ownership and Control

Rental property: When you own a rental property, you have direct ownership and control over the physical property. You make decisions regarding tenants, property management, maintenance and improvements.

REITs: Investing in REITs means buying shares of a company or trust that owns and manages income-generating properties. As an investor, you have partial ownership in the overall portfolio of properties, but you don’t have direct control over individual properties.

2. Investment Size and Diversification

Rental property: Acquiring a rental property typically requires a significant upfront investment, including the purchase price, closing costs and potential renovations. It may limit diversification as your investment is concentrated in a single property or a small number of properties.

REITs: Investing in REITs allows for smaller initial investments, as you can purchase shares in a publicly traded REIT on the stock market. This provides the opportunity for diversification by investing in a wide range of properties across different locations and property types.

3. Management and Responsibility

Rental property: Owning a rental property involves active management responsibilities. You are responsible for tasks such as finding tenants, collecting rent, handling maintenance and repairs and addressing tenant issues. You can choose to handle these tasks yourself or hire a property management company, which can reduce your returns.

REITs: Investing in REITs offers a more passive approach. The management and day-to-day responsibilities are handled by the REIT’s management team. As a shareholder, you receive regular dividends from the rental income generated by the properties owned by the REIT.

4. Risk and Returns

Rental property: Owning a rental property carries specific risks, such as property market fluctuations, vacancies, tenant defaults and maintenance costs. The value of the property can be influenced by local economic factors. However, it also offers the potential for higher returns if the property appreciates in value and rental income is strong.

REITs: Investing in REITs diversifies your risk across multiple properties, reducing the impact of an individual property’s performance. However, the value of REIT shares can still be subject to market fluctuations. REITs provide regular income through dividends and the potential for capital appreciation.

5. Liquidity

Rental property: Real estate investments can be less liquid than other investments. It may take time to sell a property and convert it into cash.

REITs: REITs are generally more liquid than owning rental properties. You can buy and sell shares on the stock market, providing easier access to your investment capital.

5. Tax Considerations

Rental property: Owning rental property provides opportunities for various tax benefits, such as deductions for mortgage interest, property taxes, repairs and depreciation. Rental income can also be taxed at favorable rates, and there may be potential for long-term capital gains if you sell the property.

REITs: REITs have certain tax advantages. By law, REITs are required to distribute a significant portion of their taxable income as dividends to shareholders, which may be taxed at the taxpayer’s individual tax rate. However, the tax treatment of REITs can be more complex, and it’s advisable to consult with a tax professional to understand the specific implications.

Are There Similarities?

While REITs and rental properties are distinctly different, both provide exposure to the real estate market and can be vehicles for long-term financial growth through real estate. REITs and rental properties offer the possibility of income generation and carry risks related to vacancies, natural disasters like hurricanes or location-specific market changes. 

Is One a Better Investment Than the Other?

When debating rental property vs. REIT, there isn’t one that is better than the other. This choice is based on personal preference as well as possible initial investment, risk tolerance, time commitment and other factors. Many investors who purchase rental properties also invest in REITs. 

REITs make more sense if you have little money to invest or don’t have the time to manage a property. If you’re looking for property ownership, are excited about managing a rental property and have researched the markets to find properties and areas with appreciation potential, rental property may be your best option. 

Should I Invest in a Rental Property?

Rental properties aren’t for everyone. They require larger capital investments, management and maintenance expenses and carry significant risks. However, with careful research, understanding, time and money, rental properties offer long-term appreciation and short-term positive cash flow. On the other hand, anyone can invest in REITs with even a small cash investment and start benefiting from long-term real estate market growth. 

Frequently Asked Questions

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