Real estate is generally considered to be a solid investment. Whether residential or commercial, it takes a lot of time and effort to buy a property, maintain it, improve it, and eventually sell it for a profit. If you don’t have the experience and the right team, you could end up taking a big loss. REIT investing — that is, real estate investment trusts — streamlines this process and makes it a lot less risky in general.
But if you’ve never heard of a REITs investment, you’re definitely not alone. According to the National Association of Real Estate Investment Trusts’ 2018 REIT Outlook, real estate investment trusts were undervalued and overlooked in 2017. This type of real estate investing actually generated total returns of 9.27% last year, making it an attractive option for those looking to break into investing without making a colossal commitment. These investment are actually publicly traded like other kinds of stocks and provide very similar long-term total returns. That means that they’re easy and affordable to buy into while paying off in the end.
Many different kinds of companies offer REITs. That means that you can diversify your portfolio and actually feel connected in some way to the REIT you purchase. If you’re passionate about camping and know first-hand how popular RV parks are, for example, you may want to invest in an RV park. After all, RVIA estimates there are as many as 30 million RV enthusiasts nationwide. There are also retail REITs, REITs for multi-family rental properties, office REITs, and even REITs connected to healthcare centers. Regardless of the type of REIT you choose, you will likely benefit from stable dividend yields, outlook transparency, and overall ease of use. Instead of having to perform property maintenance or wear a lot of different metaphorical hats, you can simply do some research, purchase the trust for a good price, and instantly diversify your portfolio while getting a good ROI.
If you’ve been comparing the different possible ways to get into real estate investing, REITs are an excellent place to start. They’re low-risk and low-commitment while providing a good payoff and very little work on your part. To find out more about how this type of investment could be a great move for your future, contact us for further information.