InvestGen Archives

Mar

2025

What Is a Bull Put Credit Spread? Definition and Example

By Colin Dodds | Growing Wealth, invest, Investing | Comments Off

Editor's Note: Options are not suitable for all investors. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Please see the Characteristics and Risks of Standardized Options.

The bull put credit spread, also referred to as bull put spread or short put credit spread, is an options trading strategy designed to benefit from moderately bullish market sentiment.

In a bull put credit spread, an investor buys one put option and sells another at a higher price. Each put option has the same underlying security and the same expiration date, but a different strike (exercise) price. The strategy has limited upside and downside potential.

Investors employing a bull put credit spread receive a net credit from the difference in option premiums. The strategy seeks to profit from a modest increase in price of the underlying asset before the expiration date. The trade will also benefit primarily from time decay and, to a lesser extent, from a decline in implied volatility.

Key Points

• A bull put credit spread provides opportunities in a bullish or neutral market, where the underlying asset is expected to rise or stay stable.

• This strategy involves selling a put option at a higher strike price and buying one at a lower strike price.

• The maximum potential loss is higher than the maximum potential gain in a bull put credit spread.

• A bull put credit spread benefits from time decay as the expiration date approaches.

• Limited risk and reward define the bull put credit spread, making it suitable for cautious traders.

How a Bull Put Credit Spread Works

In a bull put credit spread, the investor uses put options. Put options give the buyer the right – but not the obligation – to sell a security at a specified price during a set period of time. They’re typically used by investors who believe the price of an underlying security will go down.

In a bull credit spread, however, the strategy is structured for investors who expect the underlying stock’s price to rise or remain above a certain level before the option expires.

To construct a bull put credit spread, a trader sells a put option at a given strike price and expiration date, receiving the premium (a credit) for the sale. This option is known as the short leg because the trader sells it, collecting a premium upfront.

At the same time, the trader buys a put option at a lower strike price, paying a premium. This option is called the long leg. The premium for the long leg put option will always be less than the short leg, since the lower strike put is further out-of-the money. Thus, the trader receives a net credit for setting up the trade.

The difference between the strike prices of the two sets of options is known as the “spread,” giving the strategy its name. The “credit” in the name comes from the fact that the trader receives a net premium upfront.

Profiting from a Bull Put Credit Spread

In a properly executed bull put credit spread strategy, as long as the value of the underlying security remains above a certain level, the strategy can produce a profit as the difference in value between the two sets of options diminish. This reduction in the “spread” between the two put options reflects time decay, a dynamic by which the value of an options contract declines as that contract grows closer to its expiration date.

The “bull” in the name of this strategy reflects the investor’s expectation that the value of the underlying security will remain above the short put strike price before the option expires. Although higher asset prices may improve the probability of maximum profit, the potential gain is capped at the net credit received. If the price of the underlying security drops under the long-put strike price, then the options trader can lose money on the strategy.

Recommended: How to Trade Options

Maximum Gain, Loss, and Break-Even of a Bull Put Credit Spread

Investors in a bull put credit spread strategy make money when the value of the underlying security of the options goes up, but the trade comes with limited loss and gain potential. The short put gives the investor a credit, but caps the potential upside of the trade. And the purpose of the long put position — which the investor purchases — protects against loss.

The maximum gain on a bull put credit spread will be obtained when the price of the underlying security remains at or above the higher strike price of the short put. In this case, both put options are out-of-the-money, and expire worthless, so the trader keeps the full net premium received when the trade was initiated.

The maximum loss will be reached when the price of the underlying security falls below the strike price of the long put (lower strike). Both put options would be in-the-money, and the loss (at expiration) will be equal to the spread (the difference in the two strike prices) less the net premium received.

The breakeven point for the strategy is calculated by subtracting the net premium received upfront from the strike price of the short put. This represents the price level at which the investor neither gains or loses money.

Example of a Bull Put Credit Spread

Here’s an example of how trading a bull put credit spread can work:

Let’s say a qualified investor thinks that the price of a stock may increase modestly or hold at its current price of $50 in the next 30 days. They choose to initiate a bull put credit spread.

The investor sells a put option with a strike price of $50 for a premium of $3, and buys a put option with a strike price of $45 for a premium of $1, both expiring in 30 days. They earn a net credit of $2 — the difference in premiums. And because one options contract controls 100 shares of the underlying asset, the total credit received would be $200.

Scenario 1: Maximum Profit

The best case scenario for the investor is that the price of the stock is at or above $50 on expiration day. Both put options expire worthless, and the maximum profit is reached. Their total gain is $200, equal to $3 – $1 = $2 x 100 shares, less any commissions and fees. Once the price of the stock is above $50, the higher strike price, the trade ceases to gain additional profit.

Scenario 2: Maximum Loss

The worst case scenario for the investor is that the price of the stock is below $45 on expiration day, resulting in both options being in-the-money. The maximum loss would be reached, which is $300, plus any commissions and fees. That’s because $500 ($50 – $45 x 100) minus the $200 net credit received is $300. Once the price of the stock is below $45, the trade ceases to lose any more money.

Scenario 3: Breakeven

Suppose that on expiration day, the stock trades at $48. The long put, with a strike of $45, is out-of-the-money, and expires worthless, but the short put is in-the-money by $2. The loss on this option is equal to $200 ($2 x 100 shares), which is offset by the $200 credit received. The trader breaks even, as the profit and loss net out to $0.

Related Strategies: Bear Put Debit Spread

The opposite of the bull put credit spread is the bear put debit spread, also known as a debit put spread or bear put spread. In a bear put spread, the investor buys a put option at one strike price and sells a put option at a lower strike price — essentially swapping the order of the bull put credit spread. While this sounds similar to the bull put spread, the construction of the bear put spread results in two key differences.

First, the bear put spread, as its name implies, represents a “bearish” bet on the underlying security. The trade will tend to profit if the price of the underlying asset declines.

Second, the bear put spread is a “debit” transaction — the trader will pay a net premium to enter it, since the premium for the long leg (the higher strike price option) will be more than the premium for the short leg (the lower strike price option).

Bull Put Credit Spread Pros and Cons

There are benefits and drawbacks to using bull put credit spreads when investing.

Pros

Here are some of the key advantages to using a bull put credit spread:

• Potential losses (as well as rewards) are limited when the price moves in an adverse direction; an investor can determine their maximum potential loss upfront.

• The inevitable time decay of options improves the probability that the trade will be profitable.

• Bull put credit spread traders can still make a profit even if the underlying stock price drops slightly, as long as it remains above the breakeven point.

Cons

In addition to the benefits, there are also some disadvantages to be aware of when considering a bull put strategy.

• The profit potential in a put credit spread is limited compared to outright stock purchases, as the strategy focuses on generating income rather than capital appreciation.

• On average, the maximum loss in the strategy is larger than the maximum gain.

• Options strategies are more complicated than some other forms of investing, making it difficult for beginner investors to engage.

The Takeaway

Bull put credit spreads are bullish options trading strategies, where an investor sells one put option and buys another with a lower strike price. That investor can make money when the value of the underlying security of the options goes up, but the trade comes with limited loss and gain potential.

SoFi’s options trading platform offers qualified investors the flexibility to pursue income generation, manage risk, and use advanced trading strategies. Investors may buy put and call options or sell covered calls and cash-secured puts to speculate on the price movements of stocks, all through a simple, intuitive interface.

With SoFi Invest® online options trading, there are no contract fees and no commissions. Plus, SoFi offers educational support — including in-app coaching resources, real-time pricing, and other tools to help you make informed decisions, based on your tolerance for risk.

Explore SoFi’s user-friendly options trading platform.

Photo credit: iStock/Ridofranz

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SOIN-Q125-119

Mar

2025

What Are Bull Put Spreads & How Do They Work?

Bull Put Spread: How This Options Strategy Works

By Brian Nibley | Going to College, invest, Investing, Terminology | Comments Off

A bull put spread is an options trading strategy that investors might use when they have a moderately bullish view of an asset, meaning they think the price will increase slightly. The strategy provides the potential for profit from an increase in an underlying asset’s price while limiting losses if an asset’s price declines.

Bull put spreads and options trading are not for everyone, but learning the ins and outs of this commonly used vertical options spread could be useful to traders’ looking to pursue gains while capping downside risk.

Key Points

• Bull put spreads allow investors to profit from modest price increases in the underlying asset, aligning with a moderately bullish market outlook.

• In a bull put spread strategy, an investor sells a put option, and buys another put option on the same security, with the same expiration date, but with lower strike price.

• The maximum gain with this strategy is the difference between the premium received for selling the put with the higher strike price and the premium paid for buying the second put, minus any commissions or fees.

• This strategy limits risk by capping maximum loss, providing protection from significant downside risk.

• Time decay helps as the short put loses value faster than the long put, letting traders keep more of the initial credit if the asset’s price stays stable or rises.

• Bull put spreads can be adjusted to align with different risk tolerances and market views, making them a flexible tool within options trading.

What Is a Bull Put Spread?

A bull put spread is an options trading strategy that involves buying a put option and selling another put option on the same underlying asset with the same expiration date, but at different strike prices. The trade is considered a neutral-to-bullish strategy, since it’s designed so the maximum benefit occurs when an asset’s price moderately increases.

To execute a bull put spread, a trader will simultaneously sell a put option at a specific strike price (the short leg of the trade) and buy a put option with a lower strike price (the long leg of the trade).

The trader receives a premium for selling the option with a higher strike price but pays a premium for buying the put option with a lower strike price. The premium paid for the long leg put option will always be less than the short leg since the lower strike put is further out of the money. The difference between the premium received and the premium paid is the maximum potential profit in the trade.

The goal of the bull put spread strategy is to finish the trade with the premium earned by selling the put (sometimes referred to as writing a put option) and lose no more than the premium paid for the long put.

A bull put spread options trading strategy is sometimes called a short put spread or a credit put spread.

How a Bull Put Spread Works

Bull put spreads focus on put options, which are options contracts that give the buyer the right – but not always the obligation – to sell a security at a given price (the strike price) during a set period of time.

The bull put spread strategy earns the highest profit in situations where the underlying stock trades at or above the strike price of the short put option – the put option sold with the higher strike price – upon expiration. This strategy, therefore, works best for assets that the traders of a bull put spread believe will trade slightly upwards.

The strategy offers investors the potential to benefit from a stock’s rising price without having to hold shares. An options strategy like this also caps downside risk because the maximum loss is calculated as the difference between the strike prices of the two puts minus the net credit received.

Even though the risk is limited, there can still be times when it makes sense to close out the trade.

Max Profit and Risk

A bull put spread is meant to profit from a rising stock price, time decay, or both. This strategy caps both potential profit and loss, meaning its risk is limited.

The profit of a bull put spread is capped at the premium received by selling the short leg of the trade, minus the premium spent buying the long leg put option. This maximum profit is therefore seen if the underlying asset finishes at any price above the strike price of the short leg of the trade.

Maximum profit = premium received for selling put option – premium paid for buying put option

The maximum loss of a bull put spread is the difference between the strike prices of the short put and the long put, minus the net premium received. This occurs if the underlying asset’s price falls below the long put’s strike price at expiration.

Maximum loss = strike price of short put – strike price of long put – net premium received

The breakeven point of a bull put spread is the price the underlying asset trades at expiration so that the trader will come away even. The breakeven point is calculated as the strike price of the short put (the higher strike price) minus the net premium received upfront for the sale and purchase of both puts. At the breakeven, the trader neither makes nor loses money, not including commissions and fees.

Breakeven point = strike price of short put – net premium received

Bull Put Spread Example

A trader would like to use a bull put spread for XYZ stock since they think the price will slowly go up a month from now. XYZ is trading at $150 per share. The trader sells a put option for a premium of $3 with a strike price of $150. At the same time, they buy a put option with a premium of $1 and a strike price of $140 to limit their downside risk. Both put options have the same expiration date in a month.

The trader collects the difference between the two premiums, which is $2 ($3 – $1). Since each option contract is usually for 100 shares of stock, she’d collect a $200 premium when opening the bull put spread.

Maximum Profit

As long as XYZ stock trades at or above $150 at expiration, both puts will expire worthless, and the trader will keep the $200 premium received at the start of the trade, minus commissions and fees.

Maximum profit = $3 – $1 = $2 x 100 shares = $200

Maximum Loss

The trader will experience the maximum loss if XYZ stock trades below $140 at expiration, the lower strike price of the long leg of the trade. In this scenario, the trader will lose $800, plus commissions and fees.

Maximum loss = $150 – $140 – ($3 – $1) = $8 x 100 shares = $800

Breakeven

If XYZ stock trades at $148 at expiration, the trader will lose $200 from the short leg of the trade with the $150 stock price. However, this will be balanced out by the initial $200 premium they received when opening the position. The trader neither makes nor loses money in this scenario, not including commissions and fees.

Breakeven point = $150 – ($3 – $1) = $148

Bull Put Spread Exit Strategy

Often, trades don’t go as planned. If they did, trading would be easy, and everyone would succeed. It’s important for investors to consider how they might mitigate risk before they begin initiating a strategy, especially given the higher risk associated with options trading.

Having an exit strategy can help by providing a plan to cut losses at a predetermined point, rather than being caught off guard.

An exit strategy may be a little complicated for a bull put spread. Before the expiration date, you may want to exit the trade so you don’t have to buy an asset you may be obligated to purchase because you sold a put option. You may also decide to exit the position if the underlying asset price is falling and you want to limit your losses rather than take the maximum loss.

To close out a bull put spread entirely would require that the trader buy the short put contract to close and sell the long put option to close.

Recommended: Buy to Open vs Buy to Close

Pros and Cons of Bull Put Spreads

The following are some of the advantages and disadvantages of bull put spreads:

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Bull Put Spread Pros:

• Protection from downside risk; the maximum loss is known at the start of the trade

• The potential to profit from a modest decline in the price of the underlying asset price

• You can tailor the strategy based on your risk profile

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Bull Put Spread Cons:

• The gains from the strategy will be limited and may be lower than if the trader bought the underlying asset outright

• Maximum loss is usually more substantial than the maximum gain

• Difficult trading strategy for novice investors

Impacts of Variables

Several variables impact options prices, and options trading terminology describes how these variables might change in a given position.

Because a bull put spread consists of a short put and a long put, changes in certain variables can impact the position differently than other options positions. Here’s a brief summary.

1. Stock Price Change

A bull put spread does well when the underlying security price rises, making it a bullish strategy. When the price falls, the spread performs poorly. This is known as a position with a “net positive delta.” Delta is an options measurement that refers to how much the price of an option will change as the underlying security price changes. The ratio of a stock’s price change to an option’s price change is not usually one-to-one.

Because a bull put spread is made up of one long put and one short put, the delta often won’t change much as the stock price changes if the time to expiration remains constant. This is known as a “near-zero gamma” trade. Gamma in options trading is an estimation of how much the delta of a position will change as the underlying stock price changes.

2. Changes in Volatility

Volatility refers to how much the price of a stock might fluctuate in percentage terms across a specific timeline. Implied volatility (IV) is a variable in options prices. Higher volatility usually means higher options prices, assuming other factors stay the same. But a bull put spread changes very little when volatility changes, and everything else remains equal.

This is known as a “near-zero vega” position. Vega measures how much an option price will change when volatility changes, but other factors remain constant.

3. Time

Time decay refers to the fact that the value of an option declines as expiration draws near. The relationship of the stock price to the strike prices of the two put options will determine how time decay impacts the price of a bull put spread.

If the price of the underlying stock is near or above the strike price of the short put (the option with a higher strike price), then the price of the bull put spread narrows (allowing the trader to potentially profit) as time goes on. This occurs because the short put is closest to being in the money and falls victim to time decay more rapidly than the long put.

But if the stock price is near or below the long put’s strike price (the option with a lower strike price), then the value of the bull put spread widens (causing a loss) as time goes on. This occurs because the long put is closer to being in the money and will suffer the effects of time decay faster than the short put.

In cases where the underlying asset’s price is squarely in-between both strike prices, time decay barely affects the price of a bull put spread, as both the long and short puts will suffer time decay at more or less the same rate.

4. Early assignment

American-style options can be exercised at any time before expiration. Writers of a short options position can’t control when they might be required to fulfill the obligation of the contract. For this reason, the risk of early assignment (i.e., the risk of being required to buy the underlying asset per the option contract) must be considered when entering into short positions using options.

In a bull put spread, only the short put has early assignment risk because it represents the obligation to purchase the underlying asset. Early assignment of options usually has to do with dividends, and sometimes short puts can be assigned on the underlying stock’s ex-dividend date (the date someone has to start holding a stock if they want to receive the next dividend payment).

In-the-money puts with time value that doesn’t match the dividends of the underlying stock are likely to be assigned, as traders could earn more from the dividends they receive as a result of holding the shares than they would from the premium of the option.

For this reason, if the underlying stock price is below the short put’s strike price in a bull put spread, traders may want to contemplate the risk of early assignment. In cases where early assignment seems likely, using an exit strategy of some kind could be appropriate.

The Bottom Line

A bull put spread is one of four frequently used vertical options spreads that traders may use to try to benefit from the price movements of stocks or other assets. While the potential rewards of a bull put spread are limited, so too are its potential losses when the stock price moves in an unfavorable direction, which can make it a useful strategy for traders to have in their toolkit.

Trading options isn’t easy and can involve significant risk. Many variables are involved in options trading, some of which have been notorious for catching newbie traders by surprise. It’s important to consider your risk tolerance before initiating an options trade.

Explore SoFi’s user-friendly options trading platform.

Photo credit: iStock/kate_sept2004

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SOIN-Q125-101

Mar

2025

How to Invest in Real Estate: 7 Ways for Beginners

By Rebecca Lake | Financial Independence, invest, Investing | Comments Off

Real estate investing can be an effective way to hedge against the effects of inflation in a portfolio while generating a steady stream of income. When it comes to how to invest in real estate, there’s no single path to entry.

Where you decide to get started can ultimately depend on how much money you have to invest, your risk tolerance, and how hands-on you want to be when managing real estate investments.

Key Points

• Real estate investing offers portfolio diversification and potential income generation.

• Benefits of real estate investing include hedging against inflation and potential tax breaks.

• Different ways to invest in real estate include REITs, real estate funds, REIT ETFs, real estate crowdfunding, rental properties, fix and flip properties, and investing in your own home.

• Each investment option has its own requirements, fees, holding periods, and risk factors.

• Consider your financial goals, risk tolerance, and available capital when deciding which real estate investment strategy is right for you.

Why Invest in Real Estate?

Real estate investing can yield numerous benefits, for new and seasoned investors alike. Here are some of the main advantages to consider with property investments.

• Real estate can diversify your portfolio, allowing you to better balance risk and rewards.

• Provides the opportunity to generate investment returns outside of owning securities such as stocks, ETFs, or bonds.

• Historically, real estate is often seen as a hedge against inflation, since property prices tend to increase in tandem with price increases for other consumer goods and services.

• Owning real estate investments can allow you to generate a steady stream of passive income in the form of rents or dividends.

• Rental property ownership can include some tax breaks since the IRS allows you to deduct ordinary and necessary expenses related to operating the property.

• Real estate may appreciate significantly over time, which could result in a sizable gain should you decide to sell it. However, real estate can also depreciate in value, leading to a possible loss or negative return. Investors should know that the real estate market is different than the stock market, and adjust their expectations accordingly.

There’s one more thing that makes real estate investing for beginners particularly attractive: There are many ways to do it, which means you can choose investments that are best suited to your needs and goals.

💡 Quick Tip: While investing directly in alternative assets often requires high minimum amounts, investing in alts through a mutual fund or ETF generally involves a low minimum requirement, making them accessible to retail investors.

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7 Ways to Invest in Real Estate

Real estate investments can take different forms, some of which require direct property ownership and others that don’t. As you compare different real estate investments, here are some important things to weigh:

• Minimum investment requirements

• Any fees you might pay to own the investment

• Holding periods

• Past performance and expected returns

• Investment-specific risk factors

With those things in mind, here are seven ways to get started with real estate investing for beginners.

1. Real Estate Investment Trusts (REITs)

A real estate investment trust (REIT) is a company that owns and operates income-producing properties. The types of properties you might find in a REIT include warehouses, storage facilities, shopping centers, and office space. A REIT may also own mortgages or mortgage-backed securities.

REITs allow investors to enjoy the benefits of property ownership without having to buy a building or land. Specifically, that means steady income as REITs are required to pay out 90% of taxable income annually to shareholders in the form of dividends. Most REIT dividends are considered to be ordinary income for tax purposes.

Many REITs are publicly traded on an exchange just like a stock. That means you can buy shares through your brokerage account if you have one, making it relatively easy to add REITs to your portfolio. Remember to consider any commission fees you might pay to trade REIT shares in your brokerage account.

2. Real Estate Funds

Real estate funds are mutual funds that own a basket of securities. Depending on the fund’s investment strategy, that may include:

• Individual commercial properties

• REITs

• Mortgages and mortgage-backed securities

Mutual funds also trade on stock exchanges, just like REITs. One of the key differences is that mutual funds are not required to pay out dividends to investors, though they can do so.

Instead, real estate funds aim to provide value to investors in the form of capital appreciation. A real estate fund may buy and hold property investments for the long term, in anticipation of those investments increasing in value over time.

Investing in a real estate fund vs. REIT could offer broader exposure to a wider range of property types or investments. A REIT, for instance, may invest only in hotels and resorts whereas a real estate mutual fund may diversify with hotels, office space, retail centers, and other property types.

3. REIT ETFs

A REIT ETF or exchange-traded fund is similar to a mutual fund, but the difference is that it trades on an exchange just like a stock. There’s also a difference between REIT ETFs and real estate mutual funds regarding what they invest in. With a REIT ETF, holdings are primarily concentrated on real estate investment trusts only.

That means you could buy a single REIT ETF and gain exposure to 10, 20 or more REITs in one investment vehicle.

Some of the main advantages of choosing a REIT ETF vs. real estate funds or individual REITs include:

• Increased tax efficiency

• Lower expense ratios

• Potential for higher returns

A REIT ETF may also offer a lower minimum investment than a REIT or real estate fund, which could make it suitable for beginning investors who are working with a smaller amount of capital.

But along with those advantages, investors should know about some of the potential drawbacks:

• ETF values may be sensitive to interest rate changes

• REIT ETFs may experience volatility related to property trends

• REIT ETFs may be subject to several other types of risk, such as management and liquidity risk more so than other types of ETFs.

As always, investors should consider the risks along with the potential advantages of any investment.

4. Real Estate Crowdfunding

Real estate crowdfunding platforms allow multiple investors to come together and pool funds to fund property investments. The minimum investment may be as low as $500, depending on which platform you’re using, and if you have enough cash to invest you could fund multiple projects.

Compared to REITs, REIT ETFs, or real estate funds, crowdfunding is less liquid since there’s usually a required minimum holding period you’re expected to commit to. That’s important to know if you’re not looking to tie up substantial amounts of money for several years.

You’ll also need to meet a platform’s requirements before you can invest. Some crowdfunding platforms only accept accredited investors. To be accredited, you must:

• Have a net worth over $1 million, excluding your primary residence, OR

• Have an income of $200,000 ($300,000 if married) for each of the prior two years, with the expectation of future income at the same level

You can also qualify as accredited if you hold a Series 7, Series 65, or Series 82 securities license.

5. Rental Properties

Buying a rental property can help you create a long-term stream of income if you’re able to keep tenants in the home. Some of the ways you could generate rental income with real estate include:

• Buying a second home and renting it out to long-term tenants

• Buying a vacation home and renting it to short-term or seasonal tenants

• Purchasing a multi-unit property, such as a duplex or triplex, and renting to multiple tenants

• Renting a room in your home

But recognize the risks or downsides associated with rental properties, too:

• Negative cash flow resulting from tenancy problems

• Problem tenants

• Lack of liquidity

• Maintenance costs and property taxes

Further, the biggest consideration with rental properties usually revolves around how you’re going to finance a property purchase. You might try for a conventional mortgage, an FHA loan if you’re buying a multifamily home and plan to live in one of the units, a home equity loan or HELOC if you own a primary residence, or seller financing.

Each one has different credit, income, and down payment requirements. Weighing the pros and cons of each one can help you decide which financing option might be best.

6. Fix and Flip Properties

With fix-and-flip investments, you buy a property to renovate and then resell it for (ideally) a large profit. Becoming a house flipper could be lucrative if you’re able to buy properties low, then sell high, but it does take some knowledge of the local market you plan to sell in.

You’ll also have to think about who’s going to handle the renovations. Doing them yourself means you don’t have to spend any money hiring contractors, but if you’re not experienced with home improvements you could end up making more work for yourself in the long run.

If you’re looking for a financing option, hard money loans are one possibility. These loans let you borrow enough to cover the purchase price of the home and your estimated improvements, and make interest-only payments. However, these loans typically have terms ranging from 9 to 18 months so you’ll need to be fairly certain you can sell the property within that time frame.

7. Invest in Your Own Home

If you own a home, you could treat it as an investment on its own. Making improvements to your property that raise its value, for example, could pay off later should you decide to sell it. You may also be able to claim a tax break for the interest you pay on your mortgage.

Don’t own a home yet? Understanding what you need to qualify for a mortgage is a good place to start. Once you’re financially ready to buy, you can take the next step and shop around for the best mortgage lenders.

How to Know If Investing in Real Estate Is a Good Idea for You

Is real estate investing right for everyone? Not necessarily, as every investor’s goals are different. Asking yourself these questions can help you determine where real estate might fit into your portfolio:

• How much money are you able and willing to invest in real estate?

• What is your main goal or reason for considering property investments?

• If you’re interested in rental properties, will you oversee their management yourself or hire a property management company? How much income would you need them to generate?

• If you’re considering a fix-and-flip, can you make the necessary commitment of time and sweat equity to get the property ready to list?

• How will you finance a rental or fix-and-flip if you’re thinking of pursuing either one?

• If you’re thinking of choosing REITs, real estate crowdfunding, or REIT ETFs, how long do you anticipate holding them in your portfolio?

• How much risk do you feel comfortable with, and what do you perceive as the biggest risks of real estate investing?

Talking to a financial advisor may be helpful if you’re wondering how real estate investments might affect your tax situation, or have a bigger goal in mind, like generating enough passive income from investments to retire early.

💡 Quick Tip: When you’re actively investing in stocks, it’s important to ask what types of fees you might have to pay. For example, brokers may charge a flat fee for trading stocks, or require some commission for every trade. Taking the time to manage investment costs can be beneficial over the long term.

The Takeaway

Real estate investing is one of the most attractive alternative investments for portfolio diversification. While you might assume that property investing is only for the super-rich, it’s not as difficult to get started as you might think. Keep in mind that, depending on how much money you have to invest initially and the degree of risk you’re comfortable taking, you’re not just limited to one option when building out your portfolio with real estate.

Ready to expand your portfolio's growth potential? Alternative investments, traditionally available to high-net-worth individuals, are accessible to everyday investors on SoFi's easy-to-use platform. Investments in commodities, real estate, venture capital, and more are now within reach. Alternative investments can be high risk, so it's important to consider your portfolio goals and risk tolerance to determine if they're right for you.

Invest in alts to take your portfolio beyond stocks and bonds.

FAQ

How Can I Invest in Property With Little Money?

If you don’t have a lot of money to invest in property, you might consider real estate investment trusts or real estate ETFs for your first investments. REITs and ETFs can offer lower barriers to entry versus something like purchasing a rental property or a fix-and-flip property.

Is Real Estate Investing Worth It?

Real estate investing can be worth it if you’re able to generate steady cash flow and income, hedge against inflation, enjoy tax breaks, and/or earn above-average returns. Whether investing in real estate is worth it for you can depend on what your goals are, how much money you have to invest, and how much time you’re willing to commit to managing those investments.

Is Investing in Real Estate Better Than Stocks?

Real estate tends to have a low correlation with stocks, meaning that what happens in the stock market doesn’t necessarily affect what happens in the property markets. Investing in real estate can also be attractive for investors who are looking for a way to hedge against the effects of inflation over the long term.

Is Investing in Real Estate Safer Than Stocks?

Just like stocks, real estate investments carry risk meaning one isn’t necessarily safer than the other. Investing in both real estate and stocks can help you create a well-rounded portfolio, as the risk/reward profile for each one isn’t the same.

About the author

Rebecca Lake

Rebecca Lake has been a finance writer for nearly a decade, specializing in personal finance, investing, and small business. She is a contributor at Forbes Advisor, SmartAsset, Investopedia, The Balance, MyBankTracker, MoneyRates and CreditCards.com. Read full bio.

Photo credit: iStock/Pheelings Media

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

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Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or by emailing customer service at [email protected]. Please read the prospectus carefully prior to investing.

¹Claw Promotion: Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Probability percentage is subject to decrease. See full terms and conditions.

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. This and other important information are contained in the Fund’s prospectus. For a current prospectus, please click the Prospectus link on the Fund’s respective page. The prospectus should be read carefully prior to investing.
Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor's risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.
Please note that Interval Funds are illiquid instruments, hence the ability to trade on your timeline may be restricted. Investors should review the fee schedule for Interval Funds via the prospectus.

SOIN0124116

Mar

2025

What’s the Difference Between REITs and Real Estate Mutual Funds?

By Rebecca Lake | Growing Wealth, invest, Investing | Comments Off

Real estate investment trusts (REITs) and real estate mutual funds offer exposure to property investments, but in different ways. A REIT is a legal entity that owns and operates income-producing real estate and is required to pay dividends, while a real estate mutual fund is a pooled investment vehicle.

Key Points

• REITs and real estate mutual funds offer exposure to property investments in different ways.

• REITs are legal entities that own and operate income-producing real estate and pay dividends to shareholders.

• Real estate mutual funds are pooled investment vehicles that invest in the real estate sector through various assets.

• REITs can own different types of properties, while real estate mutual funds can invest in REITs, individual properties, and mortgage-backed securities.

• The differences between REITs and real estate mutual funds lie in their structure, investment strategies, taxation, and management styles.

What Is a REIT?

A REIT is a trust that invests in real estate, typically through direct ownership. Those properties generate rental income, which is paid out to REIT shareholders in the form of dividends. The types of properties REITs may own can include:

• Hotels and resorts

• Self-storage facilities

• Warehouses

• Commercial office space

• Retail space

• Apartment buildings

• Strip malls

Some REITs take a different approach in how they generate returns for investors. Rather than owning income-producing property, they may invest in mortgage loans and mortgage-backed securities. A third category of REITs employs a hybrid strategy, investing in both properties and mortgages.

REITs may be publicly traded on an exchange, similar to a stock, or they may be registered with the SEC but not publicly traded. This second category of REITs can also be referred to as non-traded REITs. Regardless of how they’re classified, REITs are considered alternative investments.

💡 Quick Tip: While investing directly in alternative assets often requires high minimum amounts, investing in alternative assets through a mutual fund or ETF generally involves a low minimum requirement, making them accessible to retail investors.

Alternative investments,
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Explore trading funds that include commodities, private credit, real estate, venture capital, and more.

What Is a Real Estate Mutual Fund?

A real estate fund is a type of mutual fund that’s focused on the real estate sector. Mutual funds are pooled investment vehicles that allow multiple investors to buy shares and gain access to underlying investments. What a real estate mutual fund invests in can depend on its objective.

Real estate fund investments may include:

• REITs

• Individual properties

• Mortgages and mortgage-backed securities

A fund manager determines which investments to hold inside the fund. The frequency with which fund assets turn over can depend on whether it uses an active or passive management strategy.

Real estate funds can pay out dividends to investors, though not all of them do. Some real estate funds are exchange-traded funds (ETFs), meaning they have the structure of a mutual fund but trade on an exchange like a stock.

Like most funds, real estate mutual funds have annual fees in the form of expense ratios.

What Are Key Differences Between REITs and Real Estate Mutual Funds

The most significant differences between REITs and real estate funds lie in how they operate, how they generate returns for investors, and how they’re taxed. While both have the same overall goal of leveraging real estate for returns, they don’t approach that goal the same way.

How They’re Structured

REITs are companies that either own and operate income-producing real estate, invest in mortgages and mortgage-backed securities, or a mix of both. To qualify as a REIT, the company must pay out at least 90% of its taxable income annually to investors as dividends.

A real estate fund is structured as a pooled investment vehicle that can hold dozens of different investments. Many real estate funds concentrate holdings on REITs, with some focusing on a specific niche, such as commercial office buildings or shopping centers. Other real estate funds may hold real estate stocks.

Both REITs and real estate funds may be actively or passively managed. With an active management strategy, the fund manager’s goal is to beat the market. Passive management, on the other hand, aims to track the performance of an underlying benchmark. Real estate index funds, for example, may try to match the returns of the Dow Jones U.S. Real Estate Index (DJUSRE).

How They’re Taxed

How a REIT generates its income can determine how dividends paid to investors are treated for tax purposes. In most instances, dividends that result from the collection of rent payments are treated as ordinary income for the investor. If a REIT sells a property at a profit, however, those dividends would be treated as capital gains.
Investors who own REIT shares should receive a Form 1099-DIV each year that breaks down:

• Dividends from ordinary income

• Qualified dividends

• Capital gains

• Payments for return of capital

Qualified dividends are taxed at the long-term capital gains tax rate. This rate is lower than ordinary income tax rates for certain taxpayers.

Real estate mutual funds can also generate a Form 1099-DIV for investors when there are taxable distributions to report. Investors have to pay tax on income and/or capital gains they receive from the fund, including:

• Dividends

• Interest payments

• Capital gains from the sale of underlying assets

Ordinary dividends are taxed as ordinary income, while qualified dividends qualify for the long-term capital gains tax rate. Interest is also taxed as ordinary income in most cases, while capital gains are subject to the short- or long-term capital gains tax rate, depending on how long the assets were held.

Recommended: How Are Mutual Funds Taxed?

Key Investment Considerations

When debating whether to invest in a REIT vs. mutual fund, it’s important to consider your objectives, risk tolerance, and time horizon. Specifically, you may want to ask yourself the following:

• Is it more important to collect dividends for passive income or realize gains through capital appreciation?

• What degree of risk are you comfortable taking?

• Which real estate sectors are you seeking exposure to?

• How much capital do you have available to invest in REITs or real estate funds?

• How long do you plan to hold real estate investments in your portfolio?

It’s also helpful to look at the specifics of individual investments. For instance, if you’re interested in a REIT, you’d want to consider its past performance and typical dividend payout, the types of properties it owns, how the REIT is structured, and the fees you might pay.

With a real estate fund, it’s also important to look at the underlying assets and the fund manager’s strategy. While past performance isn’t a guarantee of future returns, it can give you insight into how the fund has moved in prior years. It’s also wise to check the expense ratio to see what owning the fund might cost.

Are There Similarities Between REITs and Real Estate Mutual Funds?

REITs and real estate funds are similar in two key ways. They’re both pathways to diversifying with real estate and in most cases, they’re highly liquid investments.

If you’re interested in leveraging the benefits of real estate investments in a portfolio but don’t want to own property directly, a REIT or real estate fund can help you accomplish your goal. How wide or narrow the scope of those investments ends up being can depend on the REIT or fund’s overall strategy.

Publicly traded REITs and real estate funds are relatively easy to trade. You just need a brokerage account to buy and sell either one on an exchange. If you were to buy a fix-and-flip property or a rental property, on the other hand, it could be more challenging to unload the investment once you’re ready to exit.

💡 Quick Tip: When people talk about investment risk, they mean the risk of losing money. Some investments are higher risk, some are lower. Be sure to bear this in mind when investing online.

Risks and Role of Real Estate in Your Portfolio

Real estate investments in general can act as an inflationary hedge in a portfolio. When consumer prices rise, rents tend to move in tandem. Real estate also has a lower correlation overall with the stock market, providing some added insulation against volatility.

However, there are risks involved in real estate investing, either through a REIT or real estate fund. The biggest risk factors include:

• Declines in property values

• Fluctuations in interest rates

• Demand for properties

Liquidity risk can also become an issue for REITs or real estate funds that have low trading volume. Building a diversified portfolio that includes real estate as one small slice can help with managing those risks. Evaluating your risk tolerance can help you decide how much of your portfolio to commit to REITs or real estate funds.

The Takeaway

REITs and real estate funds can play an important role in an investment portfolio if you’re hoping to move beyond stocks and bonds. Familiarizing yourself with how each one works and the potential risks is a good place to start. Once you’ve decided whether to invest in REITs, real estate funds, or both you can take the next step and open a brokerage account to start trading.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Invest in alts to take your portfolio beyond stocks and bonds.

FAQ

Are REITs a good investment?

REITs can be a good investment if the underlying assets perform well and generate consistent dividend income for investors. But there are no guarantees, and the real estate market comes with its own risks. Thus it’s important to consider the tax implications and the potential risks of REIT investing before getting started.

Are real estate funds a good investment?

A real estate fund can be a way to invest in property (or properties) without direct ownership. It’s possible to diversify a portfolio with multiple property types or sectors using only a couple of funds. Investors can benefit from dividends, capital appreciation, or a mix of both. But the real estate market is subject to interest rate risk, fluctuating trends, and more.

What are the risks associated with REITs and real estate funds?

The real estate market may not be influenced by the stock or bond markets, but real estate values can also be volatile, and prices in certain property sectors — or geographic areas — can rise and fall just as suddenly as equities. When investing in real estate directly or indirectly through REITs or real estate funds, be sure to do your due diligence about relevant risk factors.

Can you lose money investing in a REIT or real estate fund?

Yes, it’s possible to lose money in any type of investment, including real estate-related instruments like REITs and real estate mutual funds and ETFs. The underlying properties are not guaranteed to provide investors with a profit, so it’s important to understand what you’re investing in before you do so.

About the author

Rebecca Lake

Photo credit: iStock/jpgfactory

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. This and other important information are contained in the Fund’s prospectus. For a current prospectus, please click the Prospectus link on the Fund’s respective page. The prospectus should be read carefully prior to investing.
Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor's risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.
Please note that Interval Funds are illiquid instruments, hence the ability to trade on your timeline may be restricted. Investors should review the fee schedule for Interval Funds via the prospectus.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or by emailing customer service at [email protected]. Please read the prospectus carefully prior to investing.

Fund Fees
If you invest in Exchange Traded Funds (ETFs) through SoFi Invest (either by buying them yourself or via investing in SoFi Invest’s automated investments, formerly SoFi Wealth), these funds will have their own management fees. These fees are not paid directly by you, but rather by the fund itself. these fees do reduce the fund’s returns. Check out each fund’s prospectus for details. SoFi Invest does not receive sales commissions, 12b-1 fees, or other fees from ETFs for investing such funds on behalf of advisory clients, though if SoFi Invest creates its own funds, it could earn management fees there.
SoFi Invest may waive all, or part of any of these fees, permanently or for a period of time, at its sole discretion for any reason. Fees are subject to change at any time. The current fee schedule will always be available in your Account Documents section of SoFi Invest.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOIN0224007

Mar

2025

What Is Regulation T (Reg T) & What Does It Do?

Regulation T (Reg T): All You Need to Know

By Rebecca Lake | Growing Wealth, invest, Investing, Terminology | Comments Off

Regulation T, or “Reg T” for short, is a Federal Reserve Board regulation governing the extension of credit from brokerage firms to investors (also called margin accounts). In margin trading, Regulation T is used to determine initial margin requirements. An investor who fails to meet the initial margin requirements may be subject to a Reg T call, which is one type of margin call.

Understanding Regulation T and Regulation T calls is important when trading securities on margin.

What Is Regulation T?

Regulation T is issued by the Federal Reserve Board, pursuant to the 1934 Securities Exchange Act. The purpose of Reg T is to regulate how brokerage firms and broker dealers extend credit to investors in margin trading transactions. Specifically, Regulation T governs initial margin requirements, as well as payment rules that apply to certain types of securities transactions.

Margin trading means an investor borrows money from a brokerage to make investments. This allows the investor to potentially increase their investment without putting up any additional money out of pocket. For example, an investor may be able to put up $10,000 to purchase 100 shares of stock and borrow another $10,000 on margin from their brokerage to double their investment to $20,000.

Regulation T is central to understanding the inner workings of margin accounts. When someone is buying on margin, the assets in their brokerage account serve as collateral for a line of credit from the broker.

The borrowed amount is repaid with interest. Interest rates charged on margin accounts vary according to the brokerage and the amount borrowed. Trading on margin offers an opportunity to amplify returns, but poses the risk of steeper losses as well.

Increase your buying power with a margin loan from SoFi.

Borrow against your current investments at just 10.50%* and start margin trading.

*For full margin details, see terms.

💡 Quick Tip: When you trade using margin, you’re using leverage — i.e. borrowed funds that increase your purchasing power. Remember that whatever you borrow you must repay, with interest.

How Reg T Works

Regulation T works by establishing certain requirements for trading on margin. Specifically, there are three thresholds investors are required to observe when margin buying, one of which is directly determined by Regulation T.

Here’s a closer look at the various requirements to trade on margin:

• Minimum margin. Minimum margin represents the amount an investor must deposit with their brokerage before opening a margin account. Under FINRA rules, this amount must be $2,000 or 100% of the purchase price of the margin securities, whichever is less. Keep in mind that this is FINRA’s rule, and that some brokerages may require a higher minimum margin.

• Initial margin. Initial margin represents the amount an investor is allowed to borrow. Regulation T sets the maximum at 50% of the purchase price of margin securities. Again, though, brokerage firms may require investors to make a larger initial margin deposit.

• Maintenance margin. Maintenance margin represents the minimum amount of margin equity that must be held in the account at all times. If you don’t know what margin equity is, it’s the value of the securities held in your margin account less the amount you owe to the brokerage firm. FINRA sets the minimum maintenance margin at 25% of the total market value of margin securities though brokerages can establish higher limits.

Regulation T’s main function is to limit the amount of credit a brokerage can extend. It’s also used to regulate prohibited activity in cash accounts, which are separate from margin accounts. For example, an investor cannot use a cash account to buy a stock then sell it before the trade settles under Reg T rules. It may be beneficial to review the basics of leveraged trading to deepen your understanding, too.

Why Regulation T Exists

Margin trading can be risky and Regulation T is intended to limit an investor’s potential for losses. If an investor were able to borrow an unlimited amount of credit from their brokerage account to trade, they could potentially realize much larger losses over time if their investments fail to pay off.

Regulation T also ensures that investors have some skin in the game, so to speak, by requiring them to use some of their own money to invest. This can be seen as an indirect means of risk management, since an investor who’s using at least some of their own money to trade on margin may be more likely to calculate risk/reward potential and avoid reckless decision-making.

Example of Reg T

Regulation T establishes a 50% baseline for the amount an investor is required to deposit with a brokerage before trading on margin. So, for example, say you want to open a margin account. You make the minimum margin deposit of $2,000, as required by FINRA. You want to purchase 100 shares of stock valued at $100 each, which result in a total purchase price of $10,000.

Under Regulation T, the most you’d be able to borrow from your brokerage to complete the trade is $5,000. You’d have to deposit another $5,000 of your own money into your brokerage account to meet the initial margin requirement. Or, if your brokerage sets the bar higher at 60% initial margin, you’d need to put up $6,000 in order to borrow the remaining $4,000.

Why You Might Receive a Regulation T Call

Understanding the initial margin requirements is important for avoiding a Regulation T margin call. In general, a margin call happens when you fail to meet your brokerage’s requirements for trading in a margin account. Reg T calls occur when you fall short of the initial margin requirements. This can happen, for instance, if you’re trading options on margin or if you have an ACH deposit transaction that’s later reversed.

Regulation T margin calls are problematic because you can’t make any additional trades in your account until you deposit money to meet the 50% initial margin requirement. If you don’t have cash on hand to deposit, then the brokerage can sell off securities in your account until the initial margin requirement is met.

Brokerages don’t always have to ask your permission to do this. They may not have to notify you first that they intend to sell your securities either. So that’s why it’s important to fully understand the Reg T requirements to ensure that your account is always in good standing with regard to initial margin limits.

The Takeaway

Regulation T is used to determine initial margin requirements — i.e. the amount of cash an investor must keep available relative to the amount they’ve borrowed. Margin trading may be profitable for investors, though it’s important to understand the risks involved. Specifically, investors need to know what could trigger a Regulation T margin call, and what that might mean for their portfolios.

An investor who fails to meet the initial margin requirements may be subject to a Reg T call, which is problematic because they are restricted from making additional trades until they deposit the 50% initial margin requirement. If the investor doesn’t have cash on hand to deposit, then the brokerage can sell off securities in the account until the initial margin requirement is met.

If you’re an experienced trader and have the risk tolerance to try out trading on margin, consider enabling a SoFi margin account. With a SoFi margin account, experienced investors can take advantage of more investment opportunities, and potentially increase returns. That said, margin trading is a high-risk endeavor, and using margin loans can amplify losses as well as gains.

¹Opening and funding an Active Invest account gives you the opportunity to get up to $3,000 in the stock of your choice.

About the author

Rebecca Lake

Photo credit: iStock/loveguli

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

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The Bottom Line

How to Invest in Real Estate: 7 Ways for Beginners

Why Invest in Real Estate?

Alternative investments, now for the rest of us.

Explore trading funds that include commodities, private credit, real estate, venture capital, and more.

7 Ways to Invest in Real Estate

1. Real Estate Investment Trusts (REITs)

2. Real Estate Funds

3. REIT ETFs

4. Real Estate Crowdfunding

5. Rental Properties

6. Fix and Flip Properties

7. Invest in Your Own Home

How to Know If Investing in Real Estate Is a Good Idea for You

The Takeaway

FAQ

How Can I Invest in Property With Little Money?

Is Real Estate Investing Worth It?

Is Investing in Real Estate Better Than Stocks?

Is Investing in Real Estate Safer Than Stocks?

What’s the Difference Between REITs and Real Estate Mutual Funds?

What Is a REIT?

Alternative investments, now for the rest of us.

Explore trading funds that include commodities, private credit, real estate, venture capital, and more.

What Is a Real Estate Mutual Fund?

What Are Key Differences Between REITs and Real Estate Mutual Funds

How They’re Structured

How They’re Taxed

Key Investment Considerations

Are There Similarities Between REITs and Real Estate Mutual Funds?

Risks and Role of Real Estate in Your Portfolio

The Takeaway

FAQ

Are REITs a good investment?

Are real estate funds a good investment?

What are the risks associated with REITs and real estate funds?

Can you lose money investing in a REIT or real estate fund?

Regulation T (Reg T): All You Need to Know

What Is Regulation T?

Increase your buying power with a margin loan from SoFi.

Borrow against your current investments at just 10.50%* and start margin trading.

How Reg T Works

Why Regulation T Exists

Example of Reg T

Why You Might Receive a Regulation T Call

The Takeaway

JOIN THE COMMUNITY

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