There’s more than one way to get an extra source of income up-and-running.
Stock market buy-ins, real estate investments, running a small business on the side… the list goes on and on.
The tricky part is finding something that offers the biggest payout with the least amount of work, but I think I finally got to the bottom of it!
Here’s one way to reel in some extra cash that comes along with a special tax break and 90% dividends!
What I’m talking about here is a real estate investment trust or REIT for short.
REITs are basically an easy way for investors to get exposure to the real estate market without having to deal with all the ins and outs that go with buying and selling homes.
But what do you care?
Why choose this income option over all the others that are out there?
Two reasons: TAXES and DIVIDENDS.
Unlike other investments, REITs have a one-of-a-kind tax status that requires the majority of its income to be paid out as dividends.
This means that shareholder returns are much pricier!
From apartment buildings to healthcare properties, there’s bound to be at least one type of real estate asset you’re willing to pump cash into.
And that’s exactly what a REIT is, a way for multiple investors (at least 100) to pool their money in a collection of properties and increase the payouts.
Seems good on paper, right?
Well, it’s even better in practice…
REITs buy properties and lease them to tenants. This creates an income stream which is then passed to shareholders as dividends.
If you’re out of the loop, a dividend is a sum of money that’s paid regularly by a company to shareholders out of its profits.
Usually these numbers average somewhere around 5% or so, but thanks to their special tax status, at least 90% of REIT income is paid out as dividends.
Talk about a solid chunk of change!
The best part is as real estate values appreciate over time, shareholder investments will as well.
On top of that, REITs are considered to be one of the most stable investments that you can make.
Maybe now you can see where I’m coming from…
If you’re looking to reap the same rewards from real estate, but don’t want to bother with all the work that typically goes into it, then REITs may be the income stream you’re looking for.
You can get into any REIT of your liking in the same way that you would put money into a public company’s stock.
It doesn’t get much easier than that…
Checkout some of the real estate investment trusts that are currently up for grabs and generate your own additional source of income today!