Invest in real estate without the leg work

Image courtesy of hywards at freedigitalphotos.net

Image courtesy of hywards at freedigitalphotos.net

Nervous about buying a property, rehabbing it then either selling it or renting it out?  Just not cut out to be the big, bad landlord or seller?  What if you could just invest in real estate without the leg work?  You can!

The vehicle for this type of investment is called “real estate investment trusts” or REIT.  A REIT can buy, develop, manage and sell assets in real estate.  It is similar to other security offerings but instead of investing in a single company, you are purchasing a portion of a managed pool of real estate.

This pool of real estate can generate income through renting, leasing and selling of property.  Then fund distribution occurs regularly to the REIT holder.  Some very good news is that REITs MUST distribute at least 90% of their yearly taxable income, to their shareholders in the form of dividends.  Nice!

Investing in REITs is a good way to get diversification without the leg work.  Sit back and let someone else do it!

Please comment your thoughts on REITs.

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