REIT Investing (Real Estate Investment Trusts)

2 Replies

Hey guys,

I'm new to real estate (and investing in general). I'm looking to acquire assets that provide positive monthly cash flow. First I was looking at rental properties (but I'm looking to minimize the time needed to manage such rental properties investment on an ongoing basis). And I stumbled on REIT and I wanted to know your thoughts on the matter. Who has had experience with that and strategy (REIT) can be used to acquire and increase cash flow from that (either monthly or quarterly).

So to recap, as a newcomer I'm mainly I'm looking for an investment option (be it real estate or other) out there that provides relative good ROI & positive cashflow (either monthly or quarterly) and minimize ongoing time to manage it (at least at the beginning and as I get more experience I'll be able start self-manage my investments in the long run).


If anyone can provide some useful insights or suggestions (FROM THEIR OWN EXPERIENCE) please that would be greatly appreciated.

Thanks

Gabriel 

A REIT is much more similar to a stock than real estate itself. It is very uncommon for people to borrow money to purchase shares in a REIT whereas it is very common to borrow to purchase real estate. They often have monthly dividends but they likely offer a lower overall return because someone else is doing all the work and you probably won't get the same benefits of leverage.

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