Investing in real estate is one of the best ways to become wealthy. The conventional way most people invest in real estate is through purchasing and renting out houses or apartment buildings. This approach requires a lot of experience, connections and hard work to acquire income producing properties in desirable locations. The major key to real estate investing is location.
The majority of good income producing properties are located in thriving downtowns or near college campuses. Most of these properties are already owned by corporations or seasoned real estate barons. If you are fortunate enough to find one available, it will usually command an extraordinarily high price that a beginner investor cannot afford. One would need a lot of cash or go into heavy debt in order to break into a prime market. Being a landlord isn’t always profitable either. It can sometimes be difficult to garner rent that will provide enough money to cover loans, maintenance fees, property taxes, etc. and still produce a profit at the end of the month.
There is an alternative and easier way to generate effortless income from real estate. You can purchase shares in a real estate investment trust. A real estate investment trust (REIT) is a company that owns, and in most cases, operates income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and even timberlands. Many REITs are freely traded on a major stock exchanges. Some REITs pay investors monthly, but most pay quarterly. Investors can also make gains when the company’s share price rises in value.
Investing in a REIT is a great way to receive effortless real estate income without the aggravations that come with being a landlord. If you consistently purchase shares every month, you will eventually be compensated with a massive amount of dependable passive income. The more shares you own, the bigger your dividend checks will be. There are many types of REITs to consider. Listed below are a few companies who have made shareholders very happy with steady income distributions.
Public Storage Company can be traded on the NYSE through ticker symbol (PSA). They own and operate self-storage facilities in the United States and Europe. Many people in westernized countries love to shop until they drop. Shoppers accumulate so many possessions that they run out of room to store them at their home. Hyperactive consumers create a strong demand for rental storage space. Many consumers pay as much as $200 per month to stockpile their unused belongings. Public Storage Company also provides storage for businesses as well.
Another solid company is American Campus Communities (ACC). It primarily engages in developing, owning, and managing high-quality student housing. This should continue to be a steady income producer as the masses of young adults continue to enroll in college and will need suitable living quarters.
LTC Properties (LTC) is a company that invests in senior housing and long term healthcare properties, including skilled nursing properties and assisted living properties. As the senior population continues to grow, real estate companies who cater to the needs of seniors will thrive. One of the best things I like about LTC properties is that they pay investors on a monthly basis.
Realty Income Corporation (O) will give you direct exposure to retail. This corporation provides investors with dependable monthly income from commercial properties that generate rental revenue under long-term, net lease agreements. Some of their top tenants are Sam’s Club, Walgreens, FedEx, CVS pharmacy, AMC theatres, Dollar General, Dollar Tree, and LA Fitness.
Those are just a few REITs that I believe will continue to generate steady income for shareholders. Always remember that you are not supposed to work hard for money. Money is a tool and it should be working hard for you. REITs offer one of the best ways for you to master your money and put it to work.
Disclaimer: This content is for informational purposes only. Everyone’s financial goals are different. It is your responsibility to conduct your own research or consult with a certified financial advisor in order to ascertain if a security fits your specific investment needs.
Disclosure: I currently own shares in (O) Realty Income