Owning a property can be complicated, but real estate investing is extremely lucrative. If you are interested in real estate investment but are worried about taking the leap alone, a Real Estate Investment Trust, or REIT, may be right for you. Luxe Crowfunding can help you begin your real estate investment journey in Florida
What is a REIT?
A REIT is a company that can invest in any real estate class and experienced executives operate them. They are modeled after mutual fund and provide investors a chance to own valuable real-estate while sharing in the dividend-based income and total returns.
Advantages of a Real Estate Investment Trust
The most significant benefit of investing in a REIT is that you do receive some of the benefits of real estate ownership and investing, but you have seasoned professionals managing the properties. This means you have much less time sunk into the investment, but you still receive many of the gains.
A REIT has a lower risk than investing on your own in a single property. Since you’re essentially buying stock in the company, your investment is spread out over a portfolio of multiple properties along with other investors. If one property doesn’t work out in your favor, you share the burden with others, and you have other property investments to fall back on.
A REIT is a high-dividend investment. REITs are required to pay out substantially all (90%) of their taxable income and most pay above-average dividends. Of the 172 publicly traded REITs listed on the major U.S. exchanges with market capitalizations greater than $500 million, 94% have higher dividend yields than the average S&P 500 company.
REITs are excellent stocks to add to any long-term investment portfolio. Not only are REITs income generators, but as property values rise they have the potential to produce some impressive returns over time.
REITs are incredibly versatile and can benefit many types of investors because they provide a healthy dividend income. REITs are a great fit for beginning investors, retirement savers, and retirees who require a continuing income stream to meet their living expenses. Instead of worrying about managing your property you simply can look over your monthly statement and monitor the management team and the assets that they’re investing in.
REITs are more exciting than a dull, steady investment. They sometimes fluctuate in a big way and move sharply in and out of favor with investors. Fortunately, the REIT managers are highly experienced and decide on when to buy and sell properties for you. The success does not fall on your shoulders alone, but you can follow along with the twists and turns.
A real estate investment trust is a great way to get yourself knowledgeable about real estate investing. They’re a relatively safer investment than flipping a single-family home. It’s a much more profitable way to start your real estate investing journey than investing than making a smaller investment and learning how to manage your investment on your own. Call Luxe Crowding today for more information.