The traditional means of investing in real estate, of course, involves actually owning real estate for some purpose, such as passive rental income. There are other options for real estate investments that don’t require the capital or stress of property ownership. Here are six options to explore.

Real Estate Mutual Funds
Mutual funds allow you to pool money with other investors to buy a collection of securities, bonds, and stocks in a portfolio. A good example of a real estate mutual fund is DFREX which has a long track record, low costs, and is backed by academic research from Nobel-winning economists.

Real Estate ETFs
Exchange-traded funds, or ETFs, are essentially a collection of bonds and/or stocks in one fund. An ETF usually has fewer capital gains than a mutual fund. They work much like mutual funds because they have a low cost and diversification. A real estate-themed ETF can be a smart investment with many options tailored to your risk level and preferred form of real estate.

Real Estate Investment Trusts (REITs)
A REIT is a good option for investing in real estate without buying property. With a REIT, you can diversify your investments based on the type of real estate class the REIT invests in. Keep in mind the Securities and Exchange Commission (SEC) warns against non-traded REITs which have high fees, little transparency, and very little liquidity.

In many housing markets, rising prices are the result of limited housing inventory. It’s predicted that new home construction will surge over the next few decades. Investing in homebuilders like Lennar, D.R. Horton, Toll Brothers, and PulteGroup is another way to invest in real estate.

Real Estate Notes
By investing in real estate notes, you are buying debt at a price below what a retail investor would pay. Investing in notes comes with an important benefit not available when buying physical real estate: multiple exit strategies like loan modification, cash for keys, and foreclosure.

Online Real Estate Investments
An option that’s commonly overlooked is the ability to invest in real estate purchases by other investors. There are a handful of companies like RealtyShares that allow investors to pool money into residential or commercial real estate investments and receive distributions. Money that’s invested may be used to buy apartment buildings, office buildings, homes, and more. The property investors “own” can come with long-term appreciation as well as distributions and dividends.