The Difference Between Equity and Debt Investment

Real estate investing offers a diverse range of strategies, including equity and debt investment. Debt investment involves providing loans to borrowers for real estate purchases or development, with the investment backed by the real estate asset as collateral. Mortgage-backed securities and real estate debt funds are popular options in this category, offering stable returns. On the other hand, equity investment involves purchasing assets that yield profits based on their performance, such as managing rental properties for monthly income. The key distinction lies in the continuous returns from a successful asset for equity investors, contrasting with the fixed returns from debt investments.

Unsure what type of investment to choose? Click here to learn about the Pros and Cons of Equity and Debt Investments.

Know your home’s worth, click here.

Homes for sale in Carmel Valley click here.

Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379

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Shirin Rezania Ramos, Realtor®

858-345-0685

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