How to invest into a REIT

What is a REIT?

A REIT other words known as real estate investment trust. A REIT is similar to buying a stock, but in real estate. When investing in a REIT you invest in real estate that is currently obtaining or will obtain a continuous flowing income. 

Investing in a REIT requires obtaining one through a broker or company invested in the particular share. Here are some things you need to know to start!

A REIT’s return tends to be more valuable than bonds, most equities, and some stock shares. Which is sadly not generally known. With a REIT you don’t have to feel the need to buy several nor are you required to buy several shares. To set a vision of what you might be investing in a REIT isn’t just an income producing real estate investment, it can also be a related asset! Here are some examples of what you might invest in when you invest in a share of your choice.

  • Loans
  • Outlets / Mall
  • Storage 
  • Hotel / Apartments
  • Office Building
  • Rental Property

Most of the time a REIT will be publicly traded on a stock exchange these are called ( publicly traded REIT

 

Set aside from a publicly traded REIT there is another option called a non-traded REIT which is registered with SEC and is not a public trade.

( Non-traded REIT)

Depending on which REIT you decide to acquire those conditions can affect how much you may benefit from it, and how much risk will be involved with the investment. 

You don’t need a lot of capital to invest in a REIT, but the usual start up amount required will range between $1k-$5k depending on the broker you invest with and how they invest it. It is extremely important to know whether or not your REIT is publicly traded or not because that dictates how your earned money grows, declines, and is invested.

By law a REIT is required to distribute taxable income at a percentage of 90% to shareholders annually.  This is one of the many perks of a REIT. Another is that a REIT progressively offers high return and dividends in the stock market. Which makes becoming a millionaire possible just from a REIT investment alone. 

Still have a couple questions on REITs?

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