REITs: How to Invest In Real Estate With Little Money!
ฝัง
- เผยแพร่เมื่อ 18 พ.ค. 2024
- What are Real Estate Investment Trusts? (REITs) and are they better than physical real estate? Today we're going to go over what a REIT is, the benefits and risks of REITs, and we'll also go over what to look for in a REIT when it comes to adding it to your portfolio.
NAREIT Website: www.reit.com/
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Timestamps:
0:00 - Start Here
0:58 - Subscriber Shout Out
1:30 - What are REITs?
3:30 - Benefits of REITs
5:55 - Risks of REITs
8:15 - How to Anaylze REITs
What are REITS?
- A real estate investment trust: a company that owns a portfolio of commercial real estate. These are usually traded on the market so that means you can buy shares of them, just like buying stock in a company. So you can buy shares of a REIT and that entitles you to ownership benefits - one of which is dividend based income. And this is super powerful because REITS are required to pay 90% of their income back to their shareholders, aka you, as dividends.
- Owning a REIT also means you don't need to own any physical real estate, you can just buy shares of a REIT and get exposure to the popular real estate asset class - and this my friends is exactly how you can own real estate without having a crazy amount of money that you would need for a down payment on a physical property.
Benefits:
- Dividend Based Income
- Diversification
- Low Cost To Buy In
- Liquidity
Risks:
- Property Specific Risks
- Dividend Taxation
- Appreciation Might Be Limited
REITS have specific metrics that you can research to gauge the profitability of that REIT.
Those metrics include:
- Fund from Operations (FFO) and Net Operating Income.
- You can also look at the occupancy levels and the rent per square foot.
If you look at enough of these press releases from different REITs, you'll be able to get context for how to compare and contrast different REITs in the category you're looking for**.
Now admittedly, that's a bit too time consuming for me personally, and if I'm looking to invest in a REIT, what I would rather do is to invest in a REIT ETF.
You guys may know that an ETF invests in a lot of different stocks, so instead of picking one REIT, you can just invest in the REIT ETF that invests in hundreds of different REITS, thereby increasing your diversification.
VNQ is an example by Vanguard, they own 174+ different publicly traded REITs and real estate related investments.(investor.vanguard.com/etf/pro..., by buying a REIT ETF like this one, or any other REIT ETF, you're getting exposure to multiple REITS and diversifying your risk a bit.
Now overall, I think REITs are best as long term investments because there will be a lot of factors that influence a REITs price over the short term, such as interest rate hikes, and different economic sectors that can be influenced.
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PS: I am not a Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for.
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I remember in 2009 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.
Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.
Mind if I ask you to recommend this particular coach you using their service?
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Sonya lee Mitchell turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Sonya lee Mitchell turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
One strategy for protecting against a recession is to buy equities. Investors, especially during a recession, need to know where and how to put money in order to make money while avoiding inflation.
It has never been easier to understand how to build your money than it is right now, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investtments, in my opinion, are complex.
please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
My advisor is ‘’Catherine Morrison Evans’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
For the Algorithm
king
I'm 48years old living in California, I'm hoping to retire at 50 if things keep going well for me. Bought my third house last month and I can't be more proud that am i now. I'm glad I made great decision about my finances that changed me forever but now I can't seem to make any other smart investment.
I can feel your pains. New guys need to realize the risks that come with all of this. You could lose it all and you could win it all. It goes both ways. Second, what works for A may not necessarily work for B and you should not be a bandwagon investor. A good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge.
@@kurttSchuster That's impressive, my portfolio have been tanking all year, tried learning new strategies to gain in the current market but all of that flew right over head, please would you mind recommending the Adviser you're using.
@@kurttSchuster Thanks for the info, i found her website and sent a message hopefully she replies soon.
SCAMS, BE AWARE !!!!
I began investing at the age of 34, primarily utilizing my hard work and dedication. Now at the age of 42, I am delighted to share that my passive income exceeded $100k for the first time in a single month. This advice is truly valuable, so don't hesitate to take action. Remember, it's not about achieving wealth quickly, but rather about building wealth consistently and persistently.
Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $508k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choi
I've actually been thinking of reaching a portfolio-adviser, my 401k and stocks been losing everything it's gained since 2019, mind if I looked-up this one coach you use?
The adviser I'm in touch with is *CAROLINA MELINA PHERSON* she works with Merrill, Pierce, Smith incorporated and interviewed on CNBC Television. You can use something else, for me she strategy works hence my result. She provides entry and exit point for the securities I focus on.
Thanks, I just googled more about her, I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
Wish i new about this sooner.
for an 18 yr old just starting his financial future your videos have been so helpful
Thanks silly puddy
@@humphrey you're welcome man, take good care
Bless u! Hope ur still going strong
i’m turning 19 this year and i’m still so confused. i want passive income so i don’t have to work for the rest of my life but i don’t know where to start and what steps to take after that. my dad encouraged me to sell real estate when i was 12 and i’m only now looking into all of it.
Thanks Humphrey, I was waiting for REITs and you’ve provided such valuable information!
love your channel dude. was looking into REIT's the last few days have been researching whether or not it's worth it, so glad you posted this. thanks for the content!
Very informative and like the fact you laid out the pros/cons… thank you
Thanks Humphrey! Another gem!
First time I've heard of this, thank you!
This is incredibly informative, thank you!
I have a small portfolio with an aggressive strategy focused on REITs and other dividend stocks. My goal is to have a minimum of $60 of dividend income every month with the quarterly income slightly higher. It’s a small snowball at the moment, hopefully it turns into an avalanche.
Goodluck my dear. Honestly i think FX-Trading is just the simplest amongst all yet you make a very good passive income weekly.
Not a Pro. LoL. I work with "Sandra Yvonne Webster" in all honesty she is an Angel. Do your own research!
Sandra was here in Utah for a seminar. She spoke about Nft bubble Great speaker, full of humor and rhetorics too. Lol!
Scam thread here
PFF is my favorite ETF I get 10 bucks dividends monthly I have 1800 in it
REITs are cool - I own property without having to worry about replacing the roof ☺️
Love the channel, Humphrey!👍🏼
Yes sir!!
Which platform do you use to buy Reits?
He’s on What’s Ap
Love this, I want to get into the real estate market but I don’t have the capital! This is what I needed
Well explained, well done Hunphrey
This is so helpful!! Thank you for your clear explanation 👌
Clear summary of the basics. ..exactly as promised. Thanks.
Scam thread
Masterclass on REITs for beginners. Thanks
I bought a big ol chunk of O in March 2020. I’ll never sell it. I buy my growth stocks with the dividends!
I’ve been waiting for a vid like this!
Thanks~~~
Such great content! Thank you 🎉
I appreciate your hard work bro
Thank you 🙏
Thank you for watching
Excellent video
ThNk you for this
I love the Jar thing! Its cool!
I am reducing my stock exposure and will be moving into REITs for real estate investing. This is one of the best alternative investments for non accredited individuals without taking on too much risk compared to other alternative assets like futures.
Very helpful.
Thanks for sharing! 🔥
No problem!
Thank you 💰
Excellent video - can you explain the pros and cons of mortgage REITS ?? - definitively more difficult to comprehend than a retail REIT !
Good stuff bro.
Where are there soo many spam comment chains between multiple people all with the end of the comment chain with someone recommending a person with their full name first middle last. It’s such a weird pattern.
Thank you!!
Have really been learning a lot from your channel. Really appreciate your videos!
Thanks~~~
Didn’t even know about this and investments are super scary because I don’t know much but this seems like a good way to go! Thank you 😃
You’re welcome!
Interesting to know, Thanks 😀
I wish I had found your channel when I was 20. Thank you so much for making these videos.
You are welcome
I love this one!!! Thanks 🙏🏻
You’re welcome here
Excellent video 😃
Another... Stellar... Performance!!! 👌
Thank you
Great video!
Thanks~~~
O is my favorite REITs !!!
I always how they worked! Thank you!
Sorry for the grammar. What I meant to say was I always wondered what they were and how they worked
Awesome channel
wow great video mr Yang , I think I found something way better
than my high yield savings account thanks
Hello Yang, due to Amazon HQ2 moving into our area, some of our zoning laws have been changed in order to provide more housing to the influx of new residents. I own a 6000 s.f. corner lot with a 1920 single-family house and a shed on it. I am now allowed to build up to 6 units on this lot and of course, I need help from the beginning to the end of the project. Do you have a video where I could begin to learn about building such a project? Of course, I will depend on a bank loan, but I have lots of equity in the property.
Grate video man!👍👏👏👏
You are awesome! Do you ever go live?🤩
Do a video about ETFs 101!!! Thank!!
I live on the Bay Area awesome that you also live in the bay I’m trying to build a portfolio in real estate
The housing market in Sydney right now is absolute chaos. People with 100k or more are being priced out in most areas and they are forced to buy within riskier/unsafe suburbs. They say the property bubble will ‘burst' soon but it hasn't so far
Hmmm I see. Thanks for the insight 320
I don’t make a lot so I started off in psec and Agnc.
Please explain
Why do a lot of REIT have low dividend score ?
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Charlotte Miller
she's mostly on Telegrams, using the user name
MILLER185💯.. that's it
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
The greater the passive income you can build, the freer you will become. Taking the first step is the hardest, but 7 house later living off passive income since June 6, 2016. You’ve got to start taking steps to achieve your goal.
I really want to start something for myself but the problem has always been not knowing where to start. What kind of investment would you advise? And what is the best way to follow it?
@@augustaj4080 Consistently investing in high quality ROi paying REITs and companies over the long term is a relatively easy strategy to create generational wealth. My "boring" REITs portfolio payed me over $4,000 in ROi last month
Great information and video. Would you recommend having a REIT in your Roth IRA portfolio?
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.
The US-Stock Mrkt had been on it’s longest bull-run in history, so the mass hysteria and panic is relatable considering we’re not accustomed to such troubled mrkts, but there are avenues lurking around if you know where to look. My wife and I are retiring this year with over $7,000,000 in tax deferred investments. up until 3 years ago we were 100% in the S&P. During bear markets we had a perfect plan. We got an investment manager in our corner and didn’t look at our portfolio for nearly a year.
Same here, 75% of my portfolio is in the red and I really don’t know how long I can stomach the losses. I’m beginning to reach a breaking point.
Patience patience patience. It's a cycle.... a sucky point in the cycle, but a cycle nonetheless.
Oh that will be so nice, Please do you mind referring me to your financial analyst?
I'm working with a consultant named *'Nolan Velden Brent,'* whom I discovered through a CNBC interview where he was featured. After reaching out to him, he has been providing valuable entry and exit points for the securities I focus on. If you're interested in his supervision and expertise, you can look him up online using his name. Following his trade pattern has been a rewarding experience, and I have no regrets about doing so.
Holding it in an HSA will also avoid that dividend income tax right?
Explain the significance of a Reit undergoing a triple reverse stock split. Good or bad thing? Accounting gimmick??..
any chance youll discuss annuitys and having them in a ira/roth ira . Since there taxed as ordinary income shouldnt it be logical to have them in a roth? Also you can only cash them out when your 59.5 but most annuties are for 3,7,or 10 years so what happens if your not 60 after that period ends? do you have to reinvest in the same insurance company? more info would help. Biggest advantage to an annuity it seems is anyone even those with unearned income can still get them unlike an ira/roth.
Awesome
I
Would a reit etf be a good idea? And if so would that be better in a Roth IRA or individual account
Do you still have to go on Fidelity, or Charles Schwab to buy an ETF or is this a different place
Hi Humphrey, I am thinking of investing in U.S REITs from Singapore using the Tiger platform. What are the tax implications ? Is there an amount which is tax free? Any info appreciated
Thank you for the investment tips sir
Is there not a bigger risk in rents at the moment as property has risen so much in the past 2 years, leaving a huge downside with interest rates rising, potentially crashing the housing market
Bay Area represent!
Haven't watched yet, will do later but I'm sure it's grade A material, like always!
Dang, Humphrey deleted my joke Nikola comment in record time! Thanks for the video, excellent content as always!!
haha what JOKE? i didnt see it!
yeah this guy doesnt even tidy upp all the bot comments lol
Should I have a second ( reit only ) roth ira
Looking for long term investing , I'm currently 28 and plan to retire at 60.
Also if I buy stock on REiTs is that different than any other company
Hi! Could you suggest great REIT ETF/index fund for non-US citizens?
Do you have any REITs that you would recommend, Humphrey?
Simon property group is really good, but they’re mostly malls. People don’t really go to malls as much as before, so it may not be good long term, especially after covid, but it’s a staple reit that people know.
“O” is another good one that pays monthly dividends , they own real estate that company’s such as Walmart, cvs, walgreens etc lease
What do you mean “hold your REIT in a Roth IRA or 401k”?
I have both (my 401k through my employer) an I’m interested in setting this up. Any help on this is greatly appreciated 🙏🏽
The tax advantages in the account make it so you don't have taxes from the reit dividend
Please review Fundrise
Good video but I still like physicals real state better which everyone should if they have the money for that!
why
Is it possible to change my 401k to one that uses a REIT. I just heard about REIT's today and I am a landlord so this is interesting to me. The rental properties I have are side income and I am looking for other ways to acquire money needless to say.
Are ETF REITs taxed as earned income, or differently compared to individual REITs? I remember hearing something like this once.
Yes capital gain
Cool
I like REITs. They feel... safer.
What do you think of MFA Financial REIT? I have 570 shares that pay quarterly
go ahead and transfer some over to me ill take a look
Hi there, If I open a REIT in a tax advantage account, theoretically I can’t tax out the dividend until retirement age correct? I don’t see the point in that as I would want the dividend return money sooner. Can you elaborate?
Correct but you’re also not withdrawing too much money out of a tax advantaged account compared to a taxable account. Dividends are best reinvested but if you want to take them out I’d invest in stock dividends instead in a taxable account for the passive income
So an IRA? REITS can be fine in an IRA and a good Diversification but in that case you would DRIP.
If you want passive income then you wouldn't be doing that from an IRA. You get penalizing for withdrawing early. You would just open a brokerage account for income
haaha thats a fun idea with the JAR!
Who knows you may be next!?
But no residential real estate?
I am mostly investing in REITs. They are historically cheap right now and REITs have actually materially outperformed private real estate investments over long time periods according to several studies. They generally outperform by 2-4% per year and this is because they enjoy significant economies of scale, develop their own properties, earn profits from other real estate-related profits, skip transaction fees, and many other reasons. I will soon post a video on this topic.
Thanks for the great video!
What about Property tax??
How do you hold a REIT in a Roth IRA account?
Self-Directed IRAs
Where and how can i start? What app or wallet should i get?
leather wallets are pretty good
How to start buying reits? Do we have to open a separate bank account? Please help.
No you don't. You can open an investing account with companies like Fundrise. Some are publicly traded too. How much do you have?
What about all the malls that are staying empty now due to covid.
If you got in on a housing/apts Reit, I feel bad for you..
And as for the empty malls, the reits (or the people controlling them) took a nice chunk from your investment to cover a deficit
@@shake1602 😂
Bitcoin should be Transparent and it isn’t as easy as people thinks is, there are so many strategies to be learnt and unfolded about Bitcoin trading
This guy currently has 666k subscribers. 5/16/22 5:59PM on a Monday.
Think about your local mall “mines a literal ghost town”
Hypothetically if I put, say, $10,000.00 into a REIT, in average what do you think I could make? It pays out quarterly, right?
29
dollars?....
@@NewWesternFront
Para el algoritmo
👏
First!!!