As a newcomer to real estate (and all the incredible income it can provide), you really have a big choice to make before getting started.
The first choice is direct ownership. Some people label this as passive income, but there’s nothing passive about dealing with renter requests, complaints, and late payments.
But if you opt for the second choice, you have the opportunity to quickly and easily begin profiting from the lucrative world of real estate without dealing with those consistent hassles! Here’s the easy path…
Real Estate Investment Trust – REIT
Instead of dealing with a late-night call about the plumbing no longer working correctly in the property you own and rent out, why not invest in real estate like you would a stock?
If you’ve been a part of The Midas Legacy for any significant length of time, you already know how profitable the stock market can be for you when you utilize our resources, strategies, and services.
Now you can couple the ease and power of trading stocks with the income potential of real estate!
All of that is harnessed by real estate investment trusts, or REITs.
A REIT is just a type of security that invests in real estate and can be traded on a major exchange. It can be invested through property or mortgages.
Here are just a few benefits of REITs:
- It’s a very liquid real estate investment,
- They offer high dividend yields – they’re required to maintain dividend payout ratios of 90% or higher!
- They come with special tax considerations,
- And REITs basically allow you to invest in real estate from the comfort of your own home!
Imagine being able to invest in real estate venture on property that will become a shopping mall, hospital, or some other usually unattainable type of structure.
It’s the sort of thing most of us would never be able to do ourselves through direct ownership.
But REITs allow the little guy to acquire ownership in those kinds of properties! It all works much like a mutual fund.
The only notable requirements for the REIT itself are that it must have at least 100 shareholders (no five of whom hold 50% of shares or more), 75% of gross income has to come from real estate, and 75% of the REIT’s assets have to be invested in real estate, U.S. treasuries, or cash.
But what many people invest in REIT’s for is the huge dividend benefit. When a security has to payout a dividend ratio of 90% or higher, it’s no wonder why so many income investors flock to REITs!
So if you’re ready to get into real estate, but don’t want to deal with all the work of finding a property, buying it, renting it out, and managing it, think about the easy investment known as REITs.
