Invest in Real Estate While Traveling the World
Are you wondering how you can build your real estate portfolio while you travel the world?
It’s simple – just start here!
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You can become a real estate investor without actually having to go out and buy commercial real estate. Another bonus: you can receive money monthly or quarterly just for being an investor.
REITs make it all possible. Thanks to legislation signed by President Dwight D. Eisenhower in 1960, the average American has access to the real estate markets by investing in REITs (real estate investment trusts). These are real estate investment trusts that own or finance portfolios of income-producing real estate. A REIT can own shopping malls, office space, hotels, and other commercial properties. The real estate assets are pooled together like mutual funds and sold as stocks to investors.
REITs (real estate investment trusts) are companies that have met specific requirements to own, operate, or finance a portfolio of income-producing real estate or real estate-related assets. It’s a feasible way for all investors to invest in sizable, income-producing, professionally managed companies that own commercial real estate.
Where Do You Start?
You can check out a listing of over 200 REITs on reit.com. Want to gain insights into the latest REIT updates? The 2018 Annual Conference takes place from November 7th-9th, 2018 at the Marriott Marquis San Francisco, CA.
How do I buy a REIT?
Buying a REIT is just like buying a stock. You can purchase a REIT through a brokerage account like TD Ameritrade or Robinhood.
Most U.S. REITs are registered with the Securities Exchange Commission (SEC) and are traded on major stock exchanges such as the New York Stock Exchange (NYSE) or the NASDAQ. Anyone can invest in a publicly traded REIT by purchasing shares through a broker or by investing in a mutual fund that specializes in public real estate.
Once you know which REITs you want to purchase, you can complete a transaction and add real estate to your portfolio in less than 5 minutes!
How do I find the current price of a REIT?
You can go to Yahoo Finance, search for the company name using the Ticker Symbol, and find the current market price of the stock.
Can I buy a REIT for less than $100?
Yes! Here is a list of REITs we found for less than $100.
What are the benefits of investing in REITs?
- Create a diverse portfolio of real estate investments
- Instantly buy and sell shares
- Gain access to a liquid investment
- Avoid maintenance fees
- No ongoing responsibility
- Receive profits monthly/quarterly
- Start with less than $100
- Invest in less than 5 minutes!
How profitable are REITs?
When a publicly-traded company realizes a profit from their operations, management can choose to keep the earnings or give the money to shareholders as a dividend. Retaining the earnings allows the company to invest in growing the business and keeping more cash reserves on hand. This means shareholders will either receive no dividend at all or they will receive a dividend yield that matches the board of directors analysis of how much should be given to investors.
There is no certainty that companies will pay dividends unless you invest in a REIT. All REITs are required to pay dividends as part of its structural agreement. REITs can not retain earnings. That’s why REITs are known to pay some of the highest dividend yields in the markets. REITs are required to pass down profits to investors. Companies under the REIT structure have to pay out 90% of their taxable income to shareholders in order to maintain their preferential tax treatment. When you invest in a REIT, you can count on monthly or quarterly dividends to provide you with income.
What do I have to do to sell my REIT?
You can sell your REIT anytime you want. If two years pass and you don’t like the direction your REIT is going in, all you have to do is sell your asset through your brokerage account. You’ll have the funds in your account as soon as the transaction has been processed. You’ll receive the current market value for your REIT asset less any commission fees. Commission fees typically range from $0-$10. Robinhood has gained popularity due to its commission-free services. Click here to sign up for Robinhood and you’ll get a free stock!
This isn’t how the process for selling physical property works. When you’re ready to sell a property, you have to think about home repairs, closing costs, and realtor’s commission. The process doesn’t happen overnight and can cost thousands of dollars to get the property to selling point. It can take months or even years to sell a property and collect proceeds.
REITs are attractive because they are liquid assets. Liquid means that the asset can be easily converted to cash. By pressing the sell button, your REIT asset gives you cash on demand.
Do you have more questions? Send us an email at blackcoupletravels.com and we will add your question to the list!
Comment below to let us know your thoughts.
Disclaimer:
Black Couple Travels is solely educational and informational and is not intended to give investment or trading advice of any kind. Not all asset classes are suitable for all investors. All investments, including real estate, is speculative in nature and involves substantial risk of loss. We encourage our investors to invest carefully. We also encourage investors to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations.
Past performance is not necessarily indicative of future results. All investments carry risk and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any kind of investing they choose to do.
Don’t enter any investment without fully understanding the worst-case scenarios of that investment.
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