How to Invest in Real Estate Without Being a Landlord
For many investors, real estate is a powerful tool for building long-term wealth, generating passive income, and hedging against inflation. However, not everyone wants to deal with the headaches of being a landlord—collecting rent, handling maintenance calls, or managing vacancies.
The good news? There are multiple ways to invest in real estate without owning or managing physical property. Whether you’re looking to diversify your portfolio or create passive income, here are the top strategies that let you enjoy the benefits of real estate—with none of the landlord responsibilities.
1. Real Estate Investment Trusts (REITs)
What they are:
REITs are publicly traded companies that own or finance income-producing real estate across sectors like commercial, industrial, healthcare, and residential properties.
Why they work:
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Easy to buy/sell through your brokerage account.
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High liquidity—unlike physical property.
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Many REITs offer consistent dividends.
Who they’re for:
Investors looking for a hands-off way to gain exposure to real estate with minimal capital and daily liquidity.
2. Private Real Estate Funds
What they are:
These are pooled investment vehicles managed by professionals who acquire, develop, or operate real estate assets. Unlike public REITs, they’re typically offered to accredited investors.
Why they work:
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Access to institutional-quality real estate.
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Diversified exposure across multiple properties.
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Potential for higher returns than traditional REITs.
Who they’re for:
High-net-worth individuals seeking diversification and better tax efficiency than public markets.
3. Real Estate Crowdfunding Platforms
What they are:
Online platforms that allow investors to pool money to fund real estate projects—such as apartment buildings, hotels, or commercial developments.
Why they work:
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Low minimum investment (sometimes $1,000 or less).
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Transparency into specific properties.
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Opportunities for both equity and debt investments.
Popular platforms:
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Fundrise
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RealtyMogul
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Crowdstreet
Who they’re for:
Tech-savvy investors looking for direct real estate exposure without full ownership.
4. Real Estate Notes & Debt Funds
What they are:
Investing in loans secured by real estate, where you earn income from the interest paid by borrowers.
Why they work:
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Steady fixed-income streams.
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Often backed by physical property as collateral.
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Shorter investment horizons available.
Who they’re for:
Investors interested in predictable returns with less market volatility.
5. 1031 Exchange DSTs (Delaware Statutory Trusts)
What they are:
A 1031 Exchange DST allows investors to defer capital gains tax from a property sale by reinvesting into a fractional interest in institutional real estate managed by professionals.
Why they work:
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Tax-deferral benefits.
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No landlord duties.
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Income potential through rental distributions.
Who they’re for:
Property owners selling real estate and wanting a passive alternative to reinvesting directly in more property.
6. Interval Funds and Real Estate Mutual Funds
What they are:
These are mutual funds or ETFs that invest primarily in real estate assets or REITs, often offering diversification and professional management.
Why they work:
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Broad exposure to different sectors and geographies.
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Lower barrier to entry.
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Managed by real estate professionals.
Who they’re for:
Investors seeking a diversified, passive option within their retirement or brokerage accounts.
Final Thoughts
Being a landlord isn’t the only way to tap into the benefits of real estate. Whether you’re looking for income, diversification, tax advantages, or long-term growth, there are sophisticated, hands-off options available for every type of investor.
At Manna Wealth Management, we help our clients identify and access alternative real estate investments that align with their risk tolerance, income needs, and long-term financial goals—without the burdens of property management.
